Ophir Gottlieb CMLviz Bullish Indicator for ThinkorSwim

[theelderwand]

This is the bullish momentum indicator from CMLviz (Capital Market Laboratories) posted by Ophir Gottlieb.

It identifies

• downtrended stocks climbing above their 200sma (a critical juncture used by algos)
• is above short ma to confirm momentum
• but not overbought as determined with RSI

Here's the code for ThinkorSwim, you can use this as a scanner as well on the Daily chart.

# CML Buy the Dip Indicator rev 1 by theelderwand in uTS 8-7-19
def EMA10 = MovAvgExponential(CLOSE, 10, 0, no);
def SMA200 = SimpleMovingAvg(CLOSE, 200, 0, no);
def RSI20 = RSI(20, 70, 30, CLOSE, AverageType.WILDERS, no);
def RSI14 = RSI(14, 70, 30, CLOSE, AverageType.WILDERS, no);
plot Data = (CLOSE crosses above SMA200) and (CLOSE > EMA10) and RSI20 < 70 and RSI14< 70;
Data.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);
Data.SetDefaultColor(Color.LIME);

Shared Scan Link: http://tos.mx/!bIJtEPZe Click here for --> Easiest way to load shared links

Note: This is NOT the same as the premium Buy the Dip indicator posted here.

 

[Piper2808t]

stock price closes up thru the 200 ema within 5 bars , stock price is above 10 ema and rsi 20 period is below 70

 

[horserider]

@Piper2808t Try this.

close crosses above MovAvgExponential("length" = 200)."AvgExp" within 5 bars and close is greater than MovAvgExponential("length" = 10)."AvgExp" within 5 bars and RSI("length" = 20)."RSI" is less than RSI("length" = 20)."OverBought"

 

[horserider]

Have you found this scan to be successful at finding winning trades?

 

[Piper2808t]

thanks cml trade machine did a backtest of it and it seems to do well

https://cmlviz.com/register/stock-option-assassin-cml-trademachine-pro/

 

[markos]

@theelderwand I'm curious, and I haven't read the manual. Why use close crosses above SMA200 vs ">" SMA200? Thanks!

It works quite well. I get good signals. Thanks, @theelderwand ! On a Daily timeframe, look at trying a 65 Day EMA vs 200 day EMA. It's just a hunch... let us know

The thing to watch for IMO is price action. Obviously, to me, if I get a signal in downtrend, I would tend to ignore it.

 

[theelderwand]

@markos I think the idea is to catch the stock crossing over rather than a steady state, I use Wealth Lab for backtesting and it seems to back test there pretty well as well. Thanks for the tip on the revision note. Added it now.
@Shinthus what seems to be the issue ?

 

[Shinthus]

Got this to work finally. I think it was my TOS having issues. Looks nice. Does anybody have any alternative settings they use for this?

IDK. I'm looking at Daily TF on many stocks and ETFs and I'm getting nearly 50% signals on candles that immediately drop significantly 1 day afterward. Even with the adjusted 65 EMA.

 

[horserider]

Examine what this is actually doing. A close cross above 200 SMA gives no hint of what the next candle may do. Hence your problem with a next candle drop. The better solution is just the cross of the 200 SMA with the 10 EMA At least you have the average of those number of days weighted in your favor. I understand it may be an attempt to enter earlier than a MA cross but also presents the problem of a close cross of the 200 and a failure of the 10 EMA to ever cross. This is complicating a simple cross.

 

[useThinkScript]

Here is an adapted scanner for VIP members

There are caveats for its use, read more:
https://usethinkscript.com/threads/emerging-stocks-scanner.18917/