Recursive Structured Algorithmic Chart Setup For ThinkOrSwim

[MagicQuotes]

http://tos.mx/Px0hmyA
Just an observation and humbly trying to learn:

Dated May 11, 2023 contributed to Usethinkscript.com

Link to chart : http://tos.mx/Px0hmyA

Not selling, not persuading, just a diary entry:

Bayesian models use technical indicators that lean heavily upon a statistical model that are structured

upon an inference of probability distribution being normal (Averages, Standard Deviations, blah, blah, blah) … Q. Is it time to discard these in favor of more cutting edge recursive individual structured algorithmic programs that respond in periods of surge pricing that respond automatically to the large increase in demand? Perhaps so.

In this Chart, the following is utilized to illustrate the mapping technique that fascinates me: I do not claim it to be predictive, but I definitely find it more descriptive and interesting to my personal biases and perceptual (input filters) processes:

In this chart of Google for a 2-day 5-minute TOS chart I employ the following in the price panel:

!. A Recursive Median Filter of 1-hour length*

2. A Recursive Median filter of 2-hour length

3. A Price comparison with the /NQ (Nasdaq 100 Futures) during the same period

4. A Time Price Opportunity TPO Chart based on Tick Size (based on number of transactions not on volume of transactions)

5. A Drawing Vertical Line to illustrate the original first in a sequence of uninterrupted price advances with an associated price of $107.10 as of Weds May 10, 2023 at approximately 11:15 EST in addition to first price decline in the uninterrupted sequence with a price of $116.76 at approximately Thursday 3:40 pm EST.
In the declared lower Panel:

• Aroon Oscillator for 2 hours
• Directional Movement Indicator for 2 Hrs.
• Directional Movement Indicator emphasizing ADX for 2 Hrs.
• Polarized Fractal Efficiency Filter for 2 HRS
• 
  
• The Recursive Median Filter is a non-linear filter technique. When applied to any wave it ignores spikes without, repeat without, averaging them. Being recursive in nature the filter references its previous values in a calculation in order to filter out shorter and longer movements that are not of interest to the developer. It’s a mathematical counting filter system, that’s all.
• Aroon Oscillator is a time (not value based filter) showing the lapse of time of highs to lows in a wave pattern
• Directional Movement Indicator – developed and popularized -as I like to call him, a “ Pythagorean genius” James Wells Wilder (1935 to 2021) mechanical engineer turned technical analyst (before the age of high speed computers came along) was able to lucidly design a descriptive mathematical model that advanced price tracking the point and figure reversal charts (remember Chart craft Inc, and the still operationally Nasdaq Dorsey Wright Point and Figure charting (go here : https://www.nasdaq.com/news-and-insights)
• Just Imagine you are a couple of trillion dollar hedge funds and you got the idea, and you wanted to just program, for instance, an algorthym on Google, to explode upwards in price in order to cause a gamma squeeze and make a ton of money before the end of the week? Just thinking.. maybe you map out a little strategy to take a great deal of money off the table while you leave the majority of market participants with crumbs off your table. Could be similar to what you did last week to the Regional Bank sector? Just imagining….
• . Best to all - just trying to learn. will appreciate any comments MagicQuotes.

 

[MerryDay]

The ToS platform indicates scale errors by displaying percentages on the right-side of a lower chart.
Your Aroon and DMI indicators are not of the same scale.
They will at times present a pretty picture but because of the scaling issues, the picture can never be consistent as ToS stuffs the indicators into the chart in whatever manner it can make them fit.

In the below example.
The statement

declare real_size ;

was added to the Aroon and DMI indicators which forces ToS to draw them to real scale:
https://tlc.thinkorswim.com/center/reference/thinkScript/Declarations/real-size

As you can see the results when drawn correctly will be consistent and correct but radically different.

 

[MagicQuotes]

Hi MerryDay @MerryDay, I do not grasp exactly how the utilization of TPO distorts the displayed chart { , but then I am a miserable failed physicist and mathematician that never followed the the discussion of quarks and scalers underlying the nature of Quantum ChromodynamicsL}
All late night kidding aside, I will leave the higher physics for another reincarnation above Neanderthal level to others blessed with greater facility. I will meditate but still do not quite grasp your comment about the use of TPO distorting the displayed chart:
See my New Version, utilizing VWAP -which is less cluttered : * http://tos.mx/1Wb1puQ
see below for description
I really appreciate your link to the following on ThinkorSwim: Perhaps others will benefit from this discussion!
__ Insert
"The real_size declaration is used in scripts of lower studies so that, when superimposed, they all employ a single scale marked off in absolute units. This can be useful if percentage view isn't desired for some reason. Note that real_size needs to be declared for all studies you are going to superimpose, otherwise the percentage view will be used.

Example​

declare lower;

declare real_size;

input length = 14;

input averageType = AverageType.WILDERS;



plot ADX = DMI(length, averageType).ADX;

A customized version of the ADX technical indicator that uses the real_size declaration."

__ End of Insert________________
_______________
I sense you are committed to sharing and teaching -all humor aside, for the Next time I will do it. But a quick workaround that I actually prefer is below:
I altered the Recursive function study,( eliminating the TPO clutter altogether -which you pointed out in your mindfullness distorts the display of the lower indicators )/
Instead, I utilized a Fractalized VWAP for less distortion.
Again,I appreciate the link, which I believe you previously addressed in a different manner before on another post of mine. - to try to assist me in cleaning up my "hacking" on the TOS without any real depth if experience- just enthusiasm with a bit of (P&V) **** and Vinegar// I am completely autodidactic regards any gadgets computer related, as I am a fossilized amateur that feels fortunate to have usethinkscript.com community to overcome my isolation. With sincere appreciation. All my work was done on a clipboard and pen and pencil back in old times before the semiconductor was invented.
Best wishes to all MagicQuotes 5-12-23
For anybody else interested, here is a link to my Recursive Function Study with the slight alteration:http://tos.mx/1Wb1puQ in case you want it.
I welcome any constructive comments- leaving the negativity at the door! we are all just trying to evolve out of the primordial mud to reach the stars. Blessings to the Bohdisattvas among us

 

[MagicQuotes]

@HODL-Lay-HE-hoo! @METAL This tread has transformed unintentionally into a personalized meditation of Price Action;
There is wisdom in establishing intentionalaty in any situation. Therefore I will attempt to do so:
The Tread is titled

"Recursive Structured Algorithmic Chart Setup"​

That is what attracted my attention in the first place: The mathematics-linquistics (numerical-verbal matrix of coding and communication involves the repeated application of rules or procedures to observe a series of successive results). Most of us are observers of this action, since we do not have the individual power to alter the action in a significant manner (all but a few trillion dollar hedge funds are able to do that with short term Algo programs designed to alter inventory delta on positions they are already in or starting to establish. They are and can be overpowered on occasion as we have observed during the Reddit revolution with Gamestop and other situations. For most of us, we are followers of the recursive collective auction action unfolding in the moment: That is quite a mouthful
All the TOS indicators, scripts, and computing oddities are intended to assist in converging upon repeated proven results given that certain procedures and rules of observation are established. The Trader-Developer is restricted to a digitalized Monitor that is really nothing but a
simple Cartesian Plane defined as a 2 dimensional intersection, perpendicular to each other at the point of chosen origin.. Most of us experience that plane as price fluctuation over time. My intention is to follow repeatable price time volume action that I can segment into repeated patterns (like DNA being replicated by RNA scripts based on the energy in each of your living cells -Watch out for the occassional Mutations! they are more common than some might assume!/ In fact the mutations might be a key-let me repeat- a key to alerting to a change in amplitude that alerts the Trader to a sea change.
FYI. there is an underutilized indicator called the AM_Detector, designed to isolate the amplitude changes in market by simply taking the abolute value of the net difference between the close and open for each segment (bar) during the indicator period. The Highest calculated absolute value is registerd and then result is smoothed with a moving average of choice.
That's all at this point. Best to all. to be continued.