Potential Breakout Arrow Plots Indicator for ThinkorSwim

  • Thread starter YungTraderFromMontana
  • Start date

What should I focus on making next

  • an exit indicator

    Votes: 15 53.6%
  • improving signals

    Votes: 10 35.7%
  • making new signals

    Votes: 2 7.1%
  • a sell calls plot

    Votes: 1 3.6%

  • Total voters
    28
YungTraderFromMontana

YungTraderFromMontana

Active member
I've worked essentially the whole week looking for the intricate signals in an atr. This was the result.
The bigger the arrow the stronger the signal, It works insanely well on spy because I made it using its price action but I'll start testing in on other stock soon.
Ignore all the plots that don't include comboup.
The link posted has the plots with the proper arrow settings.
If you ever use this I suggest learning the conditions so you can easily enter trades before the closing confirmation, it will get you the aftermarket gap which happens often. Another way to automatically scan for this is by changing close to high in the code, scan at 3:30 and it will essentially do the same thing.
(Note, orange dots assist with possible trend changes.)
Link:
https://tos.mx/h01iGtV
On later versions that use the high low indicator a rare repaint may occur of the size 5 green candles only. Backtest before trading or at least hear from others.
 
Last edited:
YungTraderFromMontana

YungTraderFromMontana

Active member
Very accurate on gold also, so far looking weaker on the majority of individual stocks yet it is still proficient.
 
BenTen

BenTen

Administrative
Staff
VIP
I removed "85% accurate" from your title because you didn't provide any backtesting or data to back it up. Once you add those information and it shows the accuracy, I will re-add it. This way, our members don't get misled.
 
YungTraderFromMontana

YungTraderFromMontana

Active member
I removed "85% accurate" from your title because you didn't provide any backtesting or data to back it up. Once you add those information and it shows the accuracy, I will re-add it. This way, our members don't get misled.
fair, I'll show the data tmr
 
P

Playstation

Active member
VIP
@YungTraderFromMontana Great work!
Are the other plots not ready yet? Like the selling?
 
T

TrueDepth

Member
Looks like it works pretty great. I am trying to understand the criteria. The ChaikinVolatility indicator is what this uses? How is ATR factored in? I don't know. There is a bunch of Indicators thrown in, but the arrows seemed to be primarily if the close is higher than the previous 3 days?
 
YungTraderFromMontana

YungTraderFromMontana

Active member
yes, I'm still working on exit plots and short plots.
 
YungTraderFromMontana

YungTraderFromMontana

Active member
@TrueDepth The atr is qs[1] and qb[1]. I'm not even sure if that is the true terminology but it looks similar to other atr's I've seen. I used chaiken vol. to eliminate moves that were insignificant to warrant a signal. It is more accurate then terminating signals if the candle size is to small because it weighs the overall volatlity. It just seemed to work. The biggest factor is if the high or close, depending on what arrow, crosses the qb[1].
 
J

Joreha

New member
2019 Donor
VIP
Anywhere I can go to learn how to use this? I don't quite know what I'm looking at. Thanks!
 
YungTraderFromMontana

YungTraderFromMontana

Active member
Anywhere I can go to learn how to use this? I don't quite know what I'm looking at. Thanks!
To start you can just use the arrow plots. They are fairly rare on spy though. If you want a deeper understanding look at the code and see what determines a signal. I'd say the biggest factor is a cross of the qb[1] line.
 
P

Piper2808t

Member
2019 Donor
Warehouse
can this be put in a scan or column ? looks great
 
YungTraderFromMontana

YungTraderFromMontana

Active member
Yes very easily, I'll make one within the next few days
 
YungTraderFromMontana

YungTraderFromMontana

Active member
Just doing a quick look, even though I designed using the daily timeframe it works well on all aggs including intraday.
 
YungTraderFromMontana

YungTraderFromMontana

Active member
I've made an updated version. Improvements include, accuracy, sell signals, and a scan.
It now has some more instructions so listen up:

Tip 1: Personally I'll only be using the big arrow signals as well as the sell put signal. The shared link will exclude the plot "combostrong" which is still usable but slighlty less accurate.

Instruction 1: The neon blue size 1 up arrows are the new "sellput" plot. The amazing thing about this plot is that it is calculated one day ahead so arrows will be plotted ahead of the current candle that created the signal. I use a scan that I will post in the last hour of trading to find stocks to sell weekly or biweekly otm puts on. Do not use this arrow unless you are familiar with how selling options works, if you make a mistake it could put you in a bad spot. The reasoning behind the signal is that it forecasts candles where there is an extremely small chance they will gap down, often times actually they will make you tons on a volatility crush as well as a gap up. Sell your position before the close of the candle with the signal or about a day after buying it.

Instruction 2: The red and green arrows are simple, up arrow means up, down arrow means down. Use them as you wish, personally I think they are perfect for weekly options or stock trades. These can be scaned for before the candle closes for maximum gains, only use the scan in the last 30 minutes or so of trading to ensure that arrows don't switch up on you. Looking at SPY this would virtually never happen.

Instruction 3: The purple and orange arrows are also very simple, they simply just use some different metrics and therefore catch moves where the other arrows don't. They are well used in a similar fashion to the red and green arrows. These can be scaned for before the candle closes for maximum gains, only use the scan in the last 30 minutes or so of trading to ensure that arrows don't switch up on you. Looking at SPY this would virtually never happen.

Essential Instruction 4: From studying the arrows I can say that you should never do these things.
Never trade on a Purple down arrow if a sellput signal is given for the next day (remember sellplot plots one day ahead)
Never trade on a sellput signal if there is a down arrow on the previous day.

To simplify it in terms of superiority of signals
red arrow > sellput and purple arrow < sellput.

Instruction 5: Become a rich as mofo

Link:
https://tos.mx/Khie61d

Scans (To scan for a specific arrow make sure only that code is a plot)
Code:
input extremeuptrend =no;
input conso = .02;
input outo = .01;


input coc = close;
input linRegLength = 21;
input smLength = 3;
input displace2 = 0;
input Num_Dev_Dn = -2.0;
input Num_Dev_Up = 2.0;

def value = Average(Inertia(coc[-displace2], linRegLength), smLength);
def error = Average(sterr(coc[-displace2], linRegLength), smLength);

def MiddleLine = value;
def LowerBand = value + Num_Dev_Dn * error;
def UpperBand = value + Num_Dev_Up * error;

def total = if close < open then (high + 2 * low + close) / 2 else if close > open then (2 * high + low + close) / 2 else (high + low + 2 * close) / 2;

def UpperPr = total[1] - low[1];

def LowerPr = total[1] - high[1];

def ROClength = 10;
def lengthm = 10;

assert(ROCLength > 0, "'roc length' must be positive: " + ROCLength);

def diff = high - low;
def avg = Average(diff, lengthm);

def CV = if avg[roclength] == 0 then 100 else (avg - avg[roclength]) / avg[roclength] * 100;

def negLine = -25;



# End Code RSI_Laguerre Self Adjusting with Fractal Energy
def price = close;
def length4 = 10;
def displace = 0;
def AvgExp = ExpAverage(price[-displace], length4);
def length6 = 48.5;
def AvgExp2 = ExpAverage(price[-displace], length6);
def c = close;



def length2 = 30;
def calclength2 = 5;
def smoothlength2 = 3;
input agg = AggregationPeriod.DAY;


def zeroline = 0;
def o10 = open(period = agg);
def c10 = close(period = agg);
def data = fold i = 0 to length2
           with s
           do s + (if c10 > GetValue(o10, i)
                   then 1
                   else if c10 < GetValue(o10, i)
                        then - 1
                        else 0);
def EMA5 = ExpAverage(data, calclength2);
def Main = ExpAverage(EMA5, smoothLength2);
def Signal = ExpAverage(Main, smoothLength2);

def zero = if IsNaN(c) then Double.NaN else 0;
def ob = if IsNaN(c) then Double.NaN else Round(length2 * .7);
def ob2 = if IsNaN(c) then Double.NaN else Round(length2* .3);
def  ob3 = if IsNaN(c10) then Double.NaN else Round(length2 * .7);
def os = if IsNaN(c) then Double.NaN else -Round(length2 * .2);



input BuyorSell = {default Buy, Sell};
input ShowTodayOnly = yes;
input ShowEntryExitBands = yes;
input ShowBubbles = yes;
input BuyEntry = 3;
input SellEntry = 3;
input BuyExit = 20;
input SellExit = 20;

input ATRLength = 50;
input TargetATRMult = 1;
input DisplayLines = yes;
input PriceDigit = 2;

def today = !ShowTodayOnly or GetDay() == GetLastDay() and SecondsFromTime(0930) >= 0;

# High

def H1  = Highest(high, SellExit);
def H2  = fold i3 = 1 to SellExit
          with ip = 0.0
          do if GetValue(high, i3) == H1 or GetValue(high, i3) < ip
             then ip
             else GetValue(high, i3);
def H3  = fold i1 = 1 to SellExit
          with ip1 = 0.0
          do if GetValue(high, i1) == H1 or GetValue(high, i1) == H2 or GetValue(high, i1) < ip1
             then ip1
             else GetValue(high, i1);
def HH  = (H2 + H3) / 2.0;

# Low

def L1  = Lowest(low, BuyExit);
def L2  = fold i4 = 1 to BuyExit
          with ip2 = 10000000.0
          do if GetValue(low, i4) == L1 or GetValue(low, i4) > ip2
             then ip2
             else GetValue(low, i4);
def L3  = Lowest(if low == L1 or low == L2 then 1000000 else low, BuyExit);
def LL  = (L2 + L2) / 2.0;

def QB = Highest(high, BuyEntry);
def QS = Lowest(low, SellEntry);
plot b = QS[1];
plot x = QB[1];
def y = LL[1];
def nottolate = ((main[7] - main) < 15);
plot midline = (qs[1]+qb[1])/2;
def ATRVal = ATR(length = ATRLength, averageType = AverageType.SIMPLE);
def mATR = Highest(ATRVal, ATRLength);
def badhammer = (((high-close) < ((close + open)/2) - low)) and (open > qb[1]);
plot differencechange = ((main-signal) < 1) and ((main - signal) > -1)  and (main < ob3);


plot comboupstrongstrongstrong = (high > qb[1]) and (c[1] < qb[2]) and (((high - qb[1])/100) < outo) and (((qb[1] - Avgexp)/100) < conso) and (low < midline[1]);

plot comboupstrongstrong = (high > qb[1]) and (c[1] < qb[2]) and (((open - qb[1])/100) < outo) and (((qb[1] - Avgexp)/100) < conso) and (open[1] or open[2] or open[3] < midline) and comboupstrongstrongstrong is false and (open < qb[1]) and (open[1] > Qs[2]) and (close[1] < midline[2]);

plot comboupstrong = (high > qb[1]) and (close[1] < qb[2]) and (((open - qb[1])/100) < outo) and (((qb[1] - Avgexp)/100) < conso)  and comboupstrongstrongstrong is false and comboupstrongstrong is false and (high > open) and (low < middleline) and (high > open);

plot midcrossgapup = (((open < midline) and ((high > midline)) or ((close[1] < midline[2])) and (high > midline[1]))) and (high > open) and (differencechange) and (close[1] < qb[2]) and (high > upperpr);

plot combodown = (qs[1] > qs[2]) and (low < qs[1]) and (c[1] > qs[2]) and (((qs[1] - open)/100) < outo) and (((Avgexp - qs[1])/100) < conso);
plot midcrossgapdown = (((open > midline) and ((low < midline)) or ((low[1] > midline[2])) and (open < midline[1]))) and (low < open) and (close[1] > qs[2]) and (low < lowerpr);

plot sellputs = (lowerpr < QS);
After using the scan, look at the stock and make sure the high/low isn't far from the current price. Make sure there isn't a huge wick.
More improvements to come!
 
Last edited:
Happyfadez

Happyfadez

New member
2019 Donor
Warehouse
I've worked essentially the whole week looking for the intricate signals in an atr. This was the result.
The bigger the arrow the stronger the signal, It works insanely well on spy because I made it using its price action but I'll start testing in on other stock soon.
Ignore all the plots that don't include comboup.
The link posted has the plots with the proper arrow settings.
If you ever use this I suggest learning the conditions so you can easily enter trades before the closing confirmation, it will get you the aftermarket gap which happens often. Another way to automatically scan for this is by changing close to high in the code, scan at 3:30 and it will essentially do the same thing.
(Note, orange dots assist with possible trend changes.)
Link:
https://tos.mx/h01iGtV
wha time frame?
 
YungTraderFromMontana

YungTraderFromMontana

Active member
Its designed for daily but I've seen it works on all of them. If your are going to use it on a timeframe other than d you can't sell puts. Other then that it should be effective. Also in the inputs change the aggregation period to the desired timeframe, two of the candle plots require this input to be congruent with the timeframe you're using.
 
YungTraderFromMontana

YungTraderFromMontana

Active member
I just checked quickly, only use the red and green arrows on the 1min, other arrows aren't effective.
 
P

Piper2808t

Member
2019 Donor
Warehouse
question "sell puts" is a very high risk many accounts are not approved for selling calls or puts are you implying buying calls or puts or selling spread? thanks and great work and sharing
 
YungTraderFromMontana

YungTraderFromMontana

Active member
question "sell puts" is a very high risk many accounts are not approved for selling calls or puts are you implying buying calls or puts or selling spread? thanks and great work and sharing
I'm implying selling weekly puts. Therefore you want no movement or upward movement in price. You could do some kind of spread if you're worried about risk but I don't think it is necessary.
 
madeinnyc

madeinnyc

Member
@YungTraderFromMontana are you using it as part of a call/put strategy?
 

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