NextSignals Trend-Following Thinkscript

[Iceman1205us]

I follow Nextsignals blog - a couple of his studies are posted on this site. He recently released a trend following study:

https://nextsignals.com/2022/08/15/modified-thinkscript-for-adaptive-moving-average/

His theory is chart forecasting is dead due to the auction market and that one has probably better success with the trend. I compared his study with a 4x EMA average study using Fib values 1, 5, 13, 21 and the lines look very similar. I don't know the math make up is but I thought I'd give his study a shot and put it my chart. First thing I wanted to do besides change colors is to display reversal arrows. I've added this code in and it works well enough, but I'm wondering why on different time frames the arrow is lagging and paints on the following candle? Is it because this is a single plot vs different plots that cross, like a 8 and 21 EMA or is it something ese?

# Arrows

plot Buy = MAA crosses above MAA[1];
Buy.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);
Buy.SetDefaultColor(createColor(0,255,0));
Buy.SetLineWeight(4);

plot Sell = MAA crosses below MAA[1];
Sell.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_DOWN);
Sell.SetDefaultColor(createColor(255,0,0));
Sell.SetLineWeight(4);

Secondly, I made a scan and watchlist from it. Scan works fine due to the addition of the arrows, but for the worklist columns, instead of displaying the default label "Long" or "Short" I'd like copy the Keltner Momentum Channels column that Pensar created. I'm not a coder, more a dabbler and I have no idea what his count code is doing:

https://usethinkscript.com/threads/momentum-keltner-channels-for-thinkorswim.2855/

I thought maybe I all needed to do was just have copy the two codes together, rewrite "plot MAA" to def MAA and redirect "def avg = MAA" but, alas, the numbers values are off. Obviously there's some black counting magic going on.

# Worklist column combining Nextsignal and Keltner Momentum Channel, trying to duplicate Keltner Column count for NextSignal

# NextSignal Adaptive  Moving Average
# https://nextsignals.com/2022/08/15/modified-thinkscript-for-adaptive-moving-average/


def lastBar = BarNumber();
def current = HighestAll(If(IsNaN(close), 0, lastBar));

## Chop Thinkorswim’s MovAvgAdaptive
input mode = {default KAMA, AMA};
def direction;
def volatility;
def ER;
switch (mode) {
case KAMA:
direction = AbsValue(close – close[10]);
volatility = Sum(AbsValue(close – close[1]), 10);
ER = if volatility != 0 then direction / volatility else 0;
case AMA:
direction = Double.NaN;
volatility = Double.NaN;
ER = AbsValue((close – Lowest(low, 10)) –
(Highest(high, 10) – close)) / (Highest(high,
10) – Lowest(low, 10));}
def SlowSF = 0.2222;
def ScaledSF = ER * (0.4 – SlowSF) + SlowSF;
def AMA = CompoundValue(1, AMA[1] + Sqr(ScaledSF) * (close – AMA[1]),
close);

def MAA = AMA;

# Keltner Momentum Channel Worklist code
# https://usethinkscript.com/threads/momentum-keltner-channels-for-thinkorswim.2855/
# Momentum Keltner Channels Watchlist Column
# Based on the FW_MOBO code by TOS user davidinc (aka Firstwave, aka David Elliott)
# The count displayed in the watchlist shows the number of bars since a break up or break down

input length       =     34;
input factor       =     0.5;
input displace     =     0;
input price        =     close;
input type         =     AverageType.Simple;

def nan      =   double.nan;
def shift    =   factor * MovingAverage(type, TrueRange(high, close, low), length);
def avg      =   MAA;
def line1    =   avg[-displace] - shift[-displace];
def line2    =   avg[-displace] + shift[-displace];
def Chg      =   if(close > line2, 1, if(close < line1, -1, 0));
def Hold     =   CompoundValue(1,if(Hold[1] == Chg or Chg == 0, Hold[1], if(Chg == 1, 1, -1)), 0);

def n1 = Hold[0] == 1;
def n2 = Hold[0] == -1;
def count1 = if n1 and !n1[1] then 1 else count1[1]+1;
def count2 = if n2 and !n2[1] then 1 else count2[1]+1;

plot n = if n1 then count1 else if n2 then count2 else double.nan;
     n.setdefaultcolor(color.black);
 assignbackgroundcolor(if n1 and count1 then color.green else color.red);

#End of code

Any help would be appreciated. Thanks

 

[jhey]

I follow Nextsignals blog - a couple of his studies are posted on this site. He recently released a trend following study:

https://nextsignals.com/2022/08/15/modified-thinkscript-for-adaptive-moving-average/

His theory is chart forecasting is dead due to the auction market and that one has probably better success with the trend. I compared his study with a 4x EMA average study using Fib values 1, 5, 13, 21 and the lines look very similar. I don't know the math make up is but I thought I'd give his study a shot and put it my chart. First thing I wanted to do besides change colors is to display reversal arrows. I've added this code in and it works well enough, but I'm wondering why on different time frames the arrow is lagging and paints on the following candle? Is it because this is a single plot vs different plots that cross, like a 8 and 21 EMA or is it something ese?

# Arrows

plot Buy = MAA crosses above MAA[1];
Buy.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);
Buy.SetDefaultColor(createColor(0,255,0));
Buy.SetLineWeight(4);

plot Sell = MAA crosses below MAA[1];
Sell.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_DOWN);
Sell.SetDefaultColor(createColor(255,0,0));
Sell.SetLineWeight(4);

Secondly, I made a scan and watchlist from it. Scan works fine due to the addition of the arrows, but for the worklist columns, instead of displaying the default label "Long" or "Short" I'd like copy the Keltner Momentum Channels column that Pensar created. I'm not a coder, more a dabbler and I have no idea what his count code is doing:

https://usethinkscript.com/threads/momentum-keltner-channels-for-thinkorswim.2855/

I thought maybe I all needed to do was just have copy the two codes together, rewrite "plot MAA" to def MAA and redirect "def avg = MAA" but, alas, the numbers values are off. Obviously there's some black counting magic going on.

# Worklist column combining Nextsignal and Keltner Momentum Channel, trying to duplicate Keltner Column count for NextSignal

# NextSignal Adaptive  Moving Average
# https://nextsignals.com/2022/08/15/modified-thinkscript-for-adaptive-moving-average/


def lastBar = BarNumber();
def current = HighestAll(If(IsNaN(close), 0, lastBar));

## Chop Thinkorswim’s MovAvgAdaptive
input mode = {default KAMA, AMA};
def direction;
def volatility;
def ER;
switch (mode) {
case KAMA:
direction = AbsValue(close – close[10]);
volatility = Sum(AbsValue(close – close[1]), 10);
ER = if volatility != 0 then direction / volatility else 0;
case AMA:
direction = Double.NaN;
volatility = Double.NaN;
ER = AbsValue((close – Lowest(low, 10)) –
(Highest(high, 10) – close)) / (Highest(high,
10) – Lowest(low, 10));}
def SlowSF = 0.2222;
def ScaledSF = ER * (0.4 – SlowSF) + SlowSF;
def AMA = CompoundValue(1, AMA[1] + Sqr(ScaledSF) * (close – AMA[1]),
close);

def MAA = AMA;

# Keltner Momentum Channel Worklist code
# https://usethinkscript.com/threads/momentum-keltner-channels-for-thinkorswim.2855/
# Momentum Keltner Channels Watchlist Column
# Based on the FW_MOBO code by TOS user davidinc (aka Firstwave, aka David Elliott)
# The count displayed in the watchlist shows the number of bars since a break up or break down

input length       =     34;
input factor       =     0.5;
input displace     =     0;
input price        =     close;
input type         =     AverageType.Simple;

def nan      =   double.nan;
def shift    =   factor * MovingAverage(type, TrueRange(high, close, low), length);
def avg      =   MAA;
def line1    =   avg[-displace] - shift[-displace];
def line2    =   avg[-displace] + shift[-displace];
def Chg      =   if(close > line2, 1, if(close < line1, -1, 0));
def Hold     =   CompoundValue(1,if(Hold[1] == Chg or Chg == 0, Hold[1], if(Chg == 1, 1, -1)), 0);

def n1 = Hold[0] == 1;
def n2 = Hold[0] == -1;
def count1 = if n1 and !n1[1] then 1 else count1[1]+1;
def count2 = if n2 and !n2[1] then 1 else count2[1]+1;

plot n = if n1 then count1 else if n2 then count2 else double.nan;
     n.setdefaultcolor(color.black);
 assignbackgroundcolor(if n1 and count1 then color.green else color.red);

#End of code

Any help would be appreciated. Thanks

Hello, is there a way to add this to the standard Keltner Channel? Im looking to have this the center line of the Keltner channel. Below is the code for the indicator in TOS. Im basically looking to have the center line green when moving up, red when moving down and grey when sideways. Im not a coder so wouldn't know how.. Thanks! KeltnerChannels:
#
# TD Ameritrade IP Company, Inc. (c) 2007-2022
#

declare weak_volume_dependency;

input displace = 0;
input factor = 1.5;
input length = 20;
input price = close;
input averageType = AverageType.SIMPLE;
input trueRangeAverageType = AverageType.SIMPLE;

def shift = factor * MovingAverage(trueRangeAverageType, TrueRange(high, close, low), length);

def average = MovingAverage(averageType, price, length);

plot Avg = average[-displace];
Avg.SetDefaultColor(GetColor(1));

plot Upper_Band = average[-displace] + shift[-displace];
Upper_Band.SetDefaultColor(GetColor(8));

plot Lower_Band = average[-displace] - shift[-displace];
Lower_Band.SetDefaultColor(GetColor(5));

 

[SleepyZ]

Hello, is there a way to add this to the standard Keltner Channel? Im looking to have this the center line of the Keltner channel. Below is the code for the indicator in TOS. Im basically looking to have the center line green when moving up, red when moving down and grey when sideways. Im not a coder so wouldn't know how.. Thanks! KeltnerChannels:
#
# TD Ameritrade IP Company, Inc. (c) 2007-2022
#

declare weak_volume_dependency;

input displace = 0;
input factor = 1.5;
input length = 20;
input price = close;
input averageType = AverageType.SIMPLE;
input trueRangeAverageType = AverageType.SIMPLE;

def shift = factor * MovingAverage(trueRangeAverageType, TrueRange(high, close, low), length);

def average = MovingAverage(averageType, price, length);

plot Avg = average[-displace];
Avg.SetDefaultColor(GetColor(1));

plot Upper_Band = average[-displace] + shift[-displace];
Upper_Band.SetDefaultColor(GetColor(8));

plot Lower_Band = average[-displace] - shift[-displace];
Lower_Band.SetDefaultColor(GetColor(5));

Here is a modified version that colors the average the way you requested, plus more bands and clouds.

If you do not like it, then replace from the code you posted

Avg.SetDefaultColor(GetColor(1));

with

Avg.assignvalueColor(if Avg > Avg[1] then color.green else if Avg < Avg[1] then color.red else color.gray);

#
# TD Ameritrade IP Company, Inc. (c) 2007-2016
#

declare weak_volume_dependency;

input displace = 0;
input factor   = 1.0;
input factor1  = 1.5;
input factor2  = 2.0;
input length   = 20;
input price    = close;
input averageType          = AverageType.SIMPLE;
input trueRangeAverageType = AverageType.SIMPLE;

def shift  = factor  * MovingAverage(trueRangeAverageType, TrueRange(high, close, low), length);
def shift1 = factor1 * MovingAverage(trueRangeAverageType, TrueRange(high, close, low), length);
def shift2 = factor2 * MovingAverage(trueRangeAverageType, TrueRange(high, close, low), length);

def average = MovingAverage(averageType, price, length);

plot Avg = average[-displace];
Avg.assignvalueColor(if Avg > Avg[1] then color.green else if Avg < Avg[1] then color.red else color.gray);

plot Upper_Band = average[-displace] + shift[-displace];
Upper_Band.SetDefaultColor(GetColor(8));

plot Lower_Band = average[-displace] - shift[-displace];
Lower_Band.SetDefaultColor(GetColor(5));

plot Upper_Band1 = average[-displace] + shift1[-displace];
Upper_Band1.SetDefaultColor(GetColor(8));

plot Lower_Band1 = average[-displace] - shift1[-displace];
Lower_Band1.SetDefaultColor(GetColor(5));

plot Upper_Band2 = average[-displace] + shift2[-displace];
Upper_Band2.SetDefaultColor(GetColor(8));

plot Lower_Band2 = average[-displace] - shift2[-displace];
Lower_Band2.SetDefaultColor(GetColor(5));

input showclouds = yes;
AddCloud(if showclouds then Upper_Band  else Double.NaN, Upper_Band1, Color.LIGHT_GREEN, Color.LIGHT_GREEN);
AddCloud(if showclouds then Upper_Band1 else Double.NaN, Upper_Band2, Color.GREEN,       Color.GREEN);
AddCloud(if showclouds then Lower_Band  else Double.NaN, Lower_Band1, Color.LIGHT_RED,   Color.LIGHT_RED);
AddCloud(if showclouds then Lower_Band1 else Double.NaN, Lower_Band2, Color.RED,         Color.RED);