SPX Trading Strategy for ThinkorSwim

[PhillyEaglesS]

@Hypoluxa Mind sharing the MACD BB settings you tweaked for AMZN?

 

[Hypoluxa]

@Hypoluxa Mind sharing the MACD BB settings you tweaked for AMZN?

sure thing:

 

[PhillyEaglesS]

@Hypoluxa Digging into this a bit I think I found the issue - under your Chart/Equities settings you have Price Type set to Bid and Extended Hours Trading selected, correct? I had been set to Mark and No Extended Hour trading which I believe was skewing my charts. Thanks though!

 

[Chence27]

Go to my original post...post #1...even tho I originally speak of SPX...the logic applies to AMZN....or any stock you tweak this to.
But the zero line and SMA’s crossing is critical and the main logic.

My question is why use the zero line as the basis to make trades as opposed to any other level? Why is the zero line special or better than any other level? On many days the zero line isn't even hit. What would be the difference between using the zero line and, for example, 5 or -5 if the stock starts out way over- or under-extended?

 

[rad14733]

My question is why use the zero line as the basis to make trades as opposed to any other level? Why is the zero line special or better than any other level? On many days the zero line isn't even hit. What would be the difference between using the zero line and, for example, 5 or -5 if the stock starts out way over- or under-extended?

Zero is a very common indicator line for many indicators and studies... If you do enough lookbacks with this setup you should eventually be able to see the "why"... It's a good reference... If the line never crosses the zero line you should be able to notice the weakness of the symbol being monitored... This setup insures that there is enough strength to increase the odds of being a successful trade... It isn't intended to be used to capture every cent of a trend, just a portion of a well established trend...

 

[Chence27]

Zero is a very common indicator line for many indicators and studies... If you do enough lookbacks with this setup you should eventually be able to see the "why"... It's a good reference... If the line never crosses the zero line you should be able to notice the weakness of the symbol being monitored... This setup insures that there is enough strength to increase the odds of being a successful trade... It isn't intended to be used to capture every cent of a trend, just a portion of a well established trend...

It seems when it doesn't cross the zero line, it's more a matter of the stock being overextended or underextended on the day, where even despite trending strongly it doesn't make it to the zero line. Perhaps this wouldn't happen with a lookback time of just one day.

 

[Hypoluxa]

It seems when it doesn't cross the zero line, it's more a matter of the stock being overextended or underextended on the day, where even despite trending strongly it doesn't make it to the zero line. Perhaps this wouldn't happen with a lookback time of just one day.

The zero line and one cleared dot (either white or red....call or put situation) is the 2nd entry signal for me. And no, some days it doesn’t cross...and that’s ok for me. I’m not trying to grab every run....just the ones that show strength and some longevity.

 

[Hypoluxa]

Zero is a very common indicator line for many indicators and studies... If you do enough lookbacks with this setup you should eventually be able to see the "why"... It's a good reference... If the line never crosses the zero line you should be able to notice the weakness of the symbol being monitored... This setup insures that there is enough strength to increase the odds of being a successful trade... It isn't intended to be used to capture every cent of a trend, just a portion of a well established trend...

Spot on once again.

 

[Buck]

Spot on once again.

I was wondering if you seen PhillyeaglesS question above, I also am curious as to if that is the correct setup. Thanks

 

[Hypoluxa]

@Hypoluxa Digging into this a bit I think I found the issue - under your Chart/Equities settings you have Price Type set to Bid and Extended Hours Trading selected, correct? I had been set to Mark and No Extended Hour trading which I believe was skewing my charts. Thanks though!

that's what it defaulted to for me i suppose. But yes, that's what I use.

 

[Hypoluxa]

I was wondering if you seen PhillyeaglesS question above, I also am curious as to if that is the correct setup. Thanks

I missed that one. I just replied to him....thx!

 

[Buck]

I missed that one. I just replied to him....thx!

When I set it to bid and extended hrs. the chart gets wonky even when I turn off "highlight extended-hours trading session?"

 

[Hypoluxa]

When I set it to bid and extended hrs. the chart gets wonky even when I turn off "highlight extended-hours trading session?"

thats interesting...i just unchecked all the AH's and it changed the indicators drastically. I changed it back since my indicators and settings for them work with them being checked.

 

[Buck]

thats interesting...i just unchecked all the AH's and it changed the indicators drastically. I changed it back since my indicators and settings for them work with them being checked.

It works when they are off for the SPX and it matches yours, but I have to have them checked on Amzn in order to get a match with yours.

 

[PhillyEaglesS]

When I set it to bid and extended hrs. the chart gets wonky even when I turn off "highlight extended-hours trading session?"

If you have AH trading on, turning off the highlight just makes it so you can't easily differentiate between regular trading hours and AH, the data is still present from AH.

SPX is a unique one since it isn't bought/sold so changing between bid/mark shouldn't affect the indicator. AMZN on the other hand is and if bid is selected, my guess is the extreme lows on the candles are coming from very low bids during low volume AH trading.

 

[Hypoluxa]

If you have AH trading on, turning off the highlight just makes it so you can't easily differentiate between regular trading hours and AH, the data is still present from AH.

SPX is a unique one since it isn't bought/sold so changing between bid/mark shouldn't affect the indicator. AMZN on the other hand is and if bid is selected, my guess is the extreme lows on the candles are coming from very low bids during low volume AH trading.

thx for that tip. I'll spend more time looking at it tonight and see.

 

[Hypoluxa]

If you have AH trading on, turning off the highlight just makes it so you can't easily differentiate between regular trading hours and AH, the data is still present from AH.

SPX is a unique one since it isn't bought/sold so changing between bid/mark shouldn't affect the indicator. AMZN on the other hand is and if bid is selected, my guess is the extreme lows on the candles are coming from very low bids during low volume AH trading.

I've tested this now and you're correct with SPX....the changes were extremely subtle. But for AMZN there were more apparent changes with entry points....but not always as positive as the current way I have all the AH's checked. It was interesting to see the changes this made...but I'm going to stick with my current setup.

 

[rad14733]

I've tested this now and you're correct with SPX....the changes were extremely subtle. But for AMZN there were more apparent changes with entry points....but not always as positive as the current way I have all the AH's checked. It was interesting to see the changes this made...but I'm going to stick with my current setup.

Quite a few Studies and indicators will give degrees of differences in results between with and without extended hours... As an example, @BenTen doesn't use extended hours so his BTD results would potentially be different with them enabled... I keep them enabled but also have one chart panel with them disabled and use that if I want to see the difference... That chart panel is primarily used to check Options which don't need extended hours but it comes in handy for other things too...

 

[Buck]

I've tested this now and you're correct with SPX....the changes were extremely subtle. But for AMZN there were more apparent changes with entry points....but not always as positive as the current way I have all the AH's checked. It was interesting to see the changes this made...but I'm going to stick with my current setup.

I'm pretty sure this is a dumb question, but I will ask anyway......what are AH's

 

[Buck]

I'm pretty sure this is a dumb question, but I will ask anyway......what are AH's

would it be Axis Hours?