Relative Volume Strategy and Momentum Scanner for ThinkorSwim

[HighBredCloud]

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);

 

[jezzer46]

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.

 

[rad14733]

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...

 

[jezzer46]

Back to work today thank goodness. Missed BDR (blessing or bad luck? Its halted on news) but nailed AESE.

 

[murkr]

Why did BDR halt for 3 hours? When it finally opened it dropped ALOT. Huge gap down.

 

[emm11]

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...

#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:

do you mind sharing the studies on this set up, thank you

 

[BenTen]

@emm11 If I'm not mistaken, @Gabrielx77 is using several moving averages and the True Momentum Oscillator that you can find here.

 

[emm11]

@emm11 If I'm not mistaken, @Gabrielx77 is using several moving averages and the True Momentum Oscillator that you can find here.

Do you know what the generated the arrows? buy sell signals?

Thanks @BenTen

 

[Gabrielx77]

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:

 

[murkr]

@Gabrielx77 Would you mind sharing that layout? It looks very clean

 

[Gabrielx77]

@Gabrielx77 Would you mind sharing that layout? It looks very clean

Yeah for sure. When I get home i’ll share the link.

 

[Gabrielx77]

@Gabrielx77 Would you mind sharing that layout? It looks very clean

http://tos.mx/RZJIHnr

Here you go. It's just Trend Painter and VWAP.

 

[murkr]

@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

 

[Gabrielx77]

@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.

 

[Gabrielx77]

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).

 

[jezzer46]

@Gabrielx77 Im glad you look to have finally found something that works for you. I too have found my comfort level in trading. Great work, keep it up.

 

[buster688]

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.

 

[subzero]

Great result @Gabrielx77 !
What was your PM scanner? Could you share?

 

[Gabrielx77]

Great result @Gabrielx77 !
What was your PM scanner? Could you share?

Thank you. And it's extremely simple, nothing crazy:

Last: $0.5-$15
Volume: 5,000
Shares: 75,000,000
Custom Study > After Hours Percentage Change > The Close has moved greater than 10%

 

[Gabrielx77]

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.