Relative Volume Strategy and Momentum Scanner for ThinkorSwim

Just curious...what needs to be changed in the script from the first page to look for SHORTS...? In particular this line...

plot scan = close >= (open*1.04);
 

New Indicator: Buy the Dip

Check out our Buy the Dip indicator and see how it can help you find profitable swing trading ideas. Scanner, watchlist columns, and add-ons are included.

Download the indicator

Join useThinkScript to post your question to a community of 21,000+ developers and traders.

This ****s. Had a few easy trades lined up yesterday and today but couldnt execute. I use active trader so using mobile app is too slow for me.

Today (on mobile app) I had GRNQ up and ready to trade around 1025am when price was in the $1.40's it topped out at $2.04. Low risk with my entry too.
 
When I was trying to close my SPY Option trade even my mobile app locked up... But the TD Ameritrade site and Web trading system ( https://trade.thinkorswim.com/ ) seemed to be working... However, none of those three alternate platforms is adequate for real trading... At least not if you need to know critical information and be able to make timely trade executions...
 
I agree with you, but at the same time everyone is just trying to put in their input about how they use Relative Volume with other indicators and personal scans/watchlists. Just make sure to do this, it has worked well for me, but I stepped away from penny stocks due to the volatility:

Scan pre-market with one of the scanners provided above. I personally keep it simple by setting:
1. Last: 0.5-15
2. Volume: 10k-MAX
3. After-hours Percentage Change < the CLOSE has moved greater than < 10% in after hours trading < 1m aggregate

Sort by the highest Relative Volume stocks; look for patterns and most importantly: worthy catalysts

Once market opens, wait for a pull back for one of the stocks that you were watching pre-market and then to pop up on your intraday watchlist/scanner. It's important that they pop up on intraday because that shows you it has strong RV pre and intraday.

The scanner I use is one of the originals that Sonny provided, but made some tweaks because it was hard to find more stocks to run. Here's my intraday scanner:
1. Last: 0.5 - 15
2. Volume: 250k - MAX
3. % change: 5% - MAX
4. Shares: MIN - 50,000,000
5. Unusual Volume < current bar's volume increased at least 40% from its typical average over 60 periods < D agg
6. Custom...

Code:
#Relative Volume High;
def x = Average(volume, 60)[1];
def v = volume;
def r = Round((v/x),1);
def rvi = r >= 2;
plot scan = rvi;

If your pre-market tickers fail by 10:45, then you can try and be patient for stocks that pop up on the intraday scanner; but like sonny taught me, you just have to be patient and most of the time your PM tickers actually do run up, even if it's later in the morning.

My process is looking for PM gappers to pullback between the 32.8-50 right before market open, then pull back even more until it reaches the 50-61.8% levels (using the Fib Retracement and plot PM low to high). After I'll watch for a break over VWAP and place an entry price. It works really well, but since I have been trying to get into more large caps I had to step away from the penny stocks. I did some back testing on other indicators called the Trend Reversal and TMO, provided by BenTen, I think I'm going to try and use them for these small caps starting tomorrow. I'll let you know how that goes.

P.S. if you wanted to see my chart setup:

s40viHf.png
do you mind sharing the studies on this set up, thank you
 
do you mind sharing the studies on this set up, thank you
Yes, just like Ben said I am using the TMO indicator. In the picture above I am using VWAP (white), 9EMA (cyan), 20EMA (purple), 180EMA (orange), Trend Reversal Indicator (Arrows) and the True Momentum Oscillator Indicator (Lower). Here's a link to my back testing of the Trend Reversal Indicator: https://usethinkscript.com/threads/...r-with-signals-for-thinkorswim.183/post-31243

Now I am using only VWAP and the Trend Painter indicator based off a suggestion from this forum by Bon Bon. It's been working well, just need to use the 1m chart and find PM gapers that'll sell off right before the open, then most likely reverse.

Here's what it currently looks like:

hGwynpy.png
 
@Sonny or anyone, Is there any way to determine that a stock will have high RV before the stock market opens? I notice that most predictable bounces happen before my scanner detects them between like 9:30-9:45.

9:45 is when I start to get results in my scanner and by then a lot has already happened. Some guy I constantly get ads from on youtube use this strategy lol, but he actually makes a lot of money. He seems to be able to find which stocks will have high RV before the stock market opens though. He says that within the first acouple of minutes of this video (28:13) He says he looks for stock before market opens that he believes will have high RV.

@Gabrielx77 That chart link only has your VWAP. I was hoping to get it with your volume on the graph itself because I don't know how to do that. Also, your colored trend painter because your colors look a little easier to see then my current setup
 
Last edited:
@Sonny or anyone, Is there any way to determine that a stock will have high RV before the stock market opens? I notice that most predictable bounces happen before my scanner detects them between like 9:30-9:45.

9:45 is when I start to get results in my scanner and by then a lot has already happened. Some guy I constantly get ads from on youtube use this strategy lol, but he actually makes a lot of money. He seems to be able to find which stocks will have high RV before the stock market opens though. He says that within the first acouple of minutes of this video (28:13) He says he looks for stock before market opens that he believes will have high RV.

@Gabrielx77 That chart link only has your VWAP. I was hoping to get it with your volume on the graph itself because I don't know how to do that. Also, your colored trend painter because your colors look a little easier to see then my current setup

Okay, here's the specific links for each study:

1. Trend Painter: http://tos.mx/hvxOzYt
2. Shares Available: http://tos.mx/Q5XLPBm
3. Price Line: http://tos.mx/ddepN4e
4. High and Low: http://tos.mx/ddepN4e

For the volume on the chart, all you have to do is go click the gear symbol on the Level 1 Bar, then make sure you're under 'General', look where it says 'Settings', look at the sub category 'Layout', then make sure the option 'Overlap Volume' is checked.

Also, you can change the amount for what you want your $ amount to be for the 'Shares Available' label. You just go to studies, customize and change the amount. What it does is divide the dollar amount by the 3 minute high + $0.01. You can adjust both the time frame and the price adjustment to whatever you want.

For the High and Low label, you can make it to whatever time frame by going to studies, edit sources for the indicator, then change every number and word that says 3 or three to whatever number you want. As it is, it shows me the high and lows of 3 minute intervals.
 
Update for today.. just got a new setup with multiple monitors, it was a great morning. I used the Trend Painter indicator I spoke about a few comments ago. CGIX was the big winner today. My strategy is fairly simple.. all I do is:

1. Scan PM look for stocks with smooth run ups, a catalyst and high RV
2. Plot the Fibonacci Retracement Levels (high and low of PM)
3. Look for a sell off right before Market Open (a break under VWAP with a reversal signal)
4. Let the stock retrace between the 38-61% levels
5. At Market Open, look for a reversal signal and a break over VWAP
6. Place your SL at the previous low, set a bracket order to sell half at 10% gain and the other half at the 100% level (when first half is sold at 10%, adjust stop loss to new leg low)

Here's a picture for some of you to have a visual of what I mean. I bought in at the break of VWAP and reversal signal. Placed a stop loss at the previous low and set 2 limit orders. Waited for the 10% gain, adjusted stop loss to new leg low, sold my other half at the 100% level ($10.40).

63KSbyT.jpg
 
Update for today.. just got a new setup with multiple monitors, it was a great morning. I used the Trend Painter indicator I spoke about a few comments ago. CGIX was the big winner today. My strategy is fairly simple.. all I do is:

1. Scan PM look for stocks with smooth run ups, a catalyst and high RV
2. Plot the Fibonacci Retracement Levels (high and low of PM)
3. Look for a sell off right before Market Open (a break under VWAP with a reversal signal)
4. Let the stock retrace between the 38-61% levels
5. At Market Open, look for a reversal signal and a break over VWAP
6. Place your SL at the previous low, set a bracket order to sell half at 10% gain and the other half at the 100% level (when first half is sold at 10%, adjust stop loss to new leg low)

Here's a picture for some of you to have a visual of what I mean. I bought in at the break of VWAP and reversal signal. Placed a stop loss at the previous low and set 2 limit orders. Waited for the 10% gain, adjusted stop loss to new leg low, sold my other half at the 100% level ($10.40).
Great rules! Thank you.
 
What's up, guys, hope ya'll don't mind me posting my results. After PM analysis, my main three stocks were SGLB (120.3 RV), VIVE (87.7 RV) and OVID (6.1 RV). Today I traded SGLB and made a 6.5% ROI. The RV1 scanner combined with the TR indicator seems to be working really well together. I should've been watching BBI instead of OVID, but it didn't sell off until 9:25, after I had already had the 3 stocks I'd be watching for the day.

Also, after today I've decided to just aim for a 10% gain rather than using 2 brackets; although, I'd be sacrificing an extra gain of 3-5%, I'd be decreasing the amount of risk on my trades. Here's my fill prices and chart if anyone is curious. I did buy before the break of VWAP, but it worked out well because it was far enough to be a level of resistance, but at the same time hit my 10% goal. I didn't like how the stock wasn't in between the 38-61% Fib levels, but it all worked out well.

9puhgXA.jpg


F4FTEqC.jpg
 

Ben's Swing Trading Strategy + Indicator

I wouldn't call this a course. My goal is zero fluff. I will jump right into my current watchlist, tell you the ThinkorSwim indicator that I'm using, and past trade setups to help you understand my swing trading strategy.

I'm Interested

Not the exact question you're looking for?

Start a new thread and receive assistance from our community.

87k+ Posts
403 Online
Create Post

The Market Trading Game Changer

Join 2,500+ subscribers inside the useThinkScript VIP Membership Club
  • Exclusive indicators
  • Proven strategies & setups
  • Private Discord community
  • ‘Buy The Dip’ signal alerts
  • Exclusive members-only content
  • Add-ons and resources
  • 1 full year of unlimited support

Frequently Asked Questions

What is useThinkScript?

useThinkScript is the #1 community of stock market investors using indicators and other tools to power their trading strategies. Traders of all skill levels use our forums to learn about scripting and indicators, help each other, and discover new ways to gain an edge in the markets.

How do I get started?

We get it. Our forum can be intimidating, if not overwhelming. With thousands of topics, tens of thousands of posts, our community has created an incredibly deep knowledge base for stock traders. No one can ever exhaust every resource provided on our site.

If you are new, or just looking for guidance, here are some helpful links to get you started.

What are the benefits of VIP Membership?
VIP members get exclusive access to these proven and tested premium indicators: Buy the Dip, Advanced Market Moves 2.0, Take Profit, and Volatility Trading Range. In addition, VIP members get access to over 50 VIP-only custom indicators, add-ons, and strategies, private VIP-only forums, private Discord channel to discuss trades and strategies in real-time, customer support, trade alerts, and much more. Learn all about VIP membership here.
How can I access the premium indicators?
To access the premium indicators, which are plug and play ready, sign up for VIP membership here.
Back
Top