Squeeze Play Strategy For ThinkOrSwim

[MerryDay]

The trend file that I found on here. It shows up on the price action. I’ve added so many and been testing them that im not sure about the correct tos file. But the name that came up when I originally typed it in is trend scan and it will have arrows showing if candles are going up or down.
-I see that you added to your study and I’ll be honest that looks very intimidating for someone like me.

The name is trend reversal. Read more about the Trend Reversal Study here:
https://usethinkscript.com/threads/trend-reversal-questions.7600/

 

[Mattyb740]

I was just asking if all 3 green label indicators come up on say a 30 min chart but not the 1,5,15,1hr,4hr,daily or weekly, would that suggest that the stock would move up only for a brief time and it be intraday ?
If I happened to see the labels on the daily -which I haven’t yet, I would think that the security is ready for the Ttm squeeze any moment and would be ok in holding overnight.
But I don’t have much experience in this indicator and was asking. Thank you.

 

[MerryDay]

I was just asking if all 3 green label indicators come up on say a 30 min chart but not the 1,5,15,1hr,4hr,daily or weekly, would that suggest that the stock would move up only for a brief time and it be intraday ?
If I happened to see the labels on the daily -which I haven’t yet, I would think that the security is ready for the Ttm squeeze any moment and would be ok in holding overnight.
But I don’t have much experience in this indicator and was asking. Thank you.

I don't trade repainting indicators. But your idea is interesting. If all the lower aggregations labels are green, does that lessen the chance of a false signal on the aggregation you are trading? Does it mean that the stock is going to continue higher?

To find the answer, add it to your chart. Analyze it over different timeframes, across history and with multiple instruments. I would look for green on the lower timeframes (nothing lower than 5min, too much noise, too much repainting), a dip in the middle aggregations AND green on a monthly timeframe (a strong long-term uptrend could tip the scales toward an upward push).
Obviously no indicator should be traded in isolation.

Come back and share your findings!

 

[Trader_Philly]

I added a Lower Study that shows all of the criteria including the Squeeze Play. The study plots 5 lines.

• The 1st Line with a space under it is the overall Squeeze Play. Green Dots = Bull, Red Dots = Bear and Yellow Dots = No Play.
• The 2nd Line is the TTM Squeeze. Green Dots = Squeeze and Yellow Dots = No Squeeze.
• The 3rd Line is the Stacked EMAs. Green Dots = EMAs Stacked Upward (Bullish) and Red Dots = EMAs Stacked Downward (Bearish) and the Yellow Dots = No EMAs Stacked.
• The 4th Line is the TTM Momentum (MO). Green Dots = Bullish MO and Red Dots = Bearish MO and Yellow Dots = No MO.
• The 5th Line is the Close Over/Under 21. Green Dots = Close Over 21 and Red Dots = Close Under 21

I like this for back testing and analyzing trades and setups. Please let me know your thoughts.
View attachment 1150
Here is the code:

#Squeeze Play Strategy For ThinkOrSwim
#@Gavstah 10/2021
#@InvestingtoGive added Lower Level 11/4/2021
#Hint: SqueezePlay - stacked EMAs (8,21,34,55,89), Upward momentum on TTM_Squeeze, in a squeeze, and price over the 21 EMA

declare lower;

input price = close;

# define the EMAs
def ema8 = ExpAverage(price, 8);
def ema21 = ExpAverage(price, 21);
def ema34 = ExpAverage(price, 34);
def ema55 = ExpAverage(price, 55);
def ema89 = ExpAverage(price, 89);

# define the EMAs
def EMA8_ = ExpAverage(price, 8);
def EMA21_ = ExpAverage(price, 21);
def EMA34_ = ExpAverage (price, 34);
def EMA55_ = ExpAverage (price, 55);
def EMA89_ = ExpAverage (price, 89);

# is the price in the buy zone?
def buyZone = price < ema8 and price > ema21;
def sellZone = price > ema8 and price < ema21;
# now, let's see what we have

# 1) is momentum > 0 and on an upward trend on then TTM_Squeeze() histogram?
def bullMomentum = TTM_Squeeze().Histogram > 0 && TTM_Squeeze().Histogram > TTM_Squeeze().Histogram[1];
def bearMomentum = TTM_Squeeze().Histogram < 0 && TTM_Squeeze().Histogram < TTM_Squeeze().Histogram[1];
# 2) Has the price closed over the 21 EMA?
def bullcloseOver21 = price > EMA21_;
def bearcloseOver21 = price < EMA21_;

# 3) Are EMAs stacked in acsending order ("The Royal Setup")?
def bullstackedEMAS = EMA8_ > EMA21_ and EMA21_ > EMA34_ and ema34 > EMA55_ and EMA55_ > ema89;
def bearstackedEMAS = EMA8_ < EMA21_ and EMA21_ < EMA34_ and ema34 < EMA55_ and EMA55_ < ema89;

# 4) are we in a TTM_squeeze (true if squeezealert has not fired)?
def squeeze = !TTM_Squeeze().SqueezeAlert;

# do we have a squeeze play?
def bullsqueezePlay = squeeze && bullstackedEMAS && bullMomentum && bullcloseOver21;
def bearsqueezePlay = squeeze && bearstackedEMAS && bearMomentum && bearcloseOver21;

# Plot for Squeeze Play
plot Dots_Play_Color = if ( isnaN(close),double.NaN, 6);
Dots_Play_Color.SetPaintingStrategy(PaintingStrategy.POINTS);
Dots_Play_Color.AssignValueColor( if (bullsqueezeplay) then Color.GREEN else if (bearsqueezeplay) then Color.RED else Color.Yellow);
Dots_Play_Color.SetLineWeight(5);

# Plot for TTM Squeeze
plot Dots_Squeeze_Color = if ( isnaN(close),double.NaN, 4);
Dots_Squeeze_Color.SetPaintingStrategy(PaintingStrategy.POINTS);
Dots_Squeeze_Color.AssignValueColor( if (squeeze) then Color.GREEN else Color.Yellow);
Dots_Squeeze_Color.SetLineWeight(5);

# Plot for Stacked EMAs
plot Dots_EMAS_Color = if ( isnaN(close),double.NaN, 3);
Dots_EMAS_Color.SetPaintingStrategy(PaintingStrategy.POINTS);
Dots_EMAS_Color.AssignValueColor( if (bullstackedEMAS) then Color.GREEN else if (bearstackedEMAS) then Color.RED else Color.Yellow);
Dots_EMAS_Color.SetLineWeight(5);

# Plot for Momentum (MO)
plot Dots_MO_Color = if ( isnaN(close),double.NaN, 2);
Dots_MO_Color.SetPaintingStrategy(PaintingStrategy.POINTS);
Dots_MO_Color.AssignValueColor( if (bullMomentum) then Color.GREEN else if (bearMomentum) then Color.RED else Color.Yellow);
Dots_MO_Color.SetLineWeight(5);

# Plot for Cross Over/Under 21
plot Dots_Cross_Color = if ( isnaN(close),double.NaN, 1);
Dots_Cross_Color.SetPaintingStrategy(PaintingStrategy.POINTS);
Dots_Cross_Color.AssignValueColor( if (bullcloseOver21) then Color.GREEN else if (bearcloseOver21) then Color.RED else Color.Yellow);
Dots_Cross_Color.SetLineWeight(5);

This block of code is redundant and can be removed.

# define the EMAs
def ema8 = ExpAverage(price, 8);
def ema21 = ExpAverage(price, 21);
def ema34 = ExpAverage(price, 34);
def ema55 = ExpAverage(price, 55);
def ema89 = ExpAverage(price, 89);

# Change this:
# 3) Are EMAs stacked in acsending order ("The Royal Setup")?
def bullstackedEMAS = EMA8_ > EMA21_ and EMA21_ > EMA34_ and ema34 > EMA55_ and EMA55_ > ema89;
def bearstackedEMAS = EMA8_ < EMA21_ and EMA21_ < EMA34_ and ema34 < EMA55_ and EMA55_ < ema89;

# To this:
# 3) Are EMAs stacked in acsending order ("The Royal Setup")?
def bullstackedEMAS = EMA8_ > EMA21_ and EMA21_ > EMA34_ and ema34 > EMA55_ and EMA55_ > EMA89;
def bearstackedEMAS = EMA8_ < EMA21_ and EMA21_ < EMA34_ and ema34 < EMA55_ and EMA55_ < EMA89;

 

[karmic]

Taylor also uses ATR as is target points. -1, -2, and -3 ATRs and 1, 2, and 3 ATRs. Not good at coding, but can this indicator include this?

 

[karmic]

Hi. Sorry that I wasn’t clear. Taylor Horton uses the Keltner Channels factorfor profit targets and exit targets ort targets. So three studies of the keltner channels with a factor of 1, 2, and 3. If the price of the stock closes between the upper and lower bands of the factor 1 keltner channels, he considers this the buy zone. Then he uses factor of 2 or 3 as his price targets.

Can the code be updated to have the buy zone between the upper and lower band of the factor of 1 keltner channels?

 

[EvilSurgeon]

I’m surprised this fires during a sqz and not once it’s fired. Can anyone explain that? Thx!

 

[DSG]

Squeeze Play Strategy For ThinkOrSwim
Hi All -

My first attempt at Thinkscript - feedback very much welcomed. This very basic indicator is based on four criteria laid out by Tylor Horton of Focused Trades (now with Simpler Trading folks) that he uses for his method of trading squeeze setups. This provides a bright green label that will show up on the top of the chart when the ticker has met the following conditions:

1) is momentum > 0 and on an upward trend on the TTM_Squeeze() histogram?
2) Has the price closed over the 21 EMA?
3) Are EMAs (8,21,34,55 and 89) stacked in acsending order ("The Royal Setup")?
4) Is this ticker in a TTM_squeeze (true if squeezealert has not fired)?

#Squeeze Play Strategy For ThinkOrSwim
#@Gavstah 10/2021
#Hint: SqueezePlay - stacked EMAs (8,21,34,55,89), Upward momentum on TTM_Squeeze, in a squeeze, and price over the 21 EMA

input price = close;

# define the EMAs
def ema8  = ExpAverage(price, 8);
def ema21 = ExpAverage(price, 21);
def ema34 = ExpAverage(price, 34);
def ema55 = ExpAverage(price, 55);
def ema89 = ExpAverage(price, 89);

# plot the EMAs
plot EMA8_ = ExpAverage(price, 8);
plot EMA21_ = ExpAverage(price, 21);
plot EMA34_ = ExpAverage (price, 34);
plot EMA55_ = ExpAverage (price, 55);
plot EMA89_ = ExpAverage (price, 89);

# is the price in the buy zone?
def buyZone = price < EMA8 AND price > EMA21;

# now, let's see what we have

# 1) is momentum > 0 and on an upward trend on then TTM_Squeeze() histogram?
def bullMomentum = TTM_Squeeze().Histogram > 0 && TTM_Squeeze().Histogram > TTM_Squeeze().Histogram[1];

# 2) Has the price closed over the 21 EMA?
def closeOver21 = price > EMA21_;

# 3) Are EMAs stacked in acsending order ("The Royal Setup")?
def stackedEMAS =  EMA8_ > EMA21_ AND EMA21_ > EMA34_ AND EMA34 > EMA55_ AND EMA55_ > EMA89;

# 4) are we in a TTM_squeeze (true if squeezealert has not fired)?
def squeeze = !TTM_Squeeze().SqueezeAlert;

# do we have a squeeze play?
def squeezePlay = squeeze && stackedEMAS && bullMomentum && closeOver21;

# set the stacked label
AddLabel(price, ”Stacked EMAs” , (if stackedEMAS then Color.GREEN else Color.RED));

# set Squeeze Play label if we're in a squeeze play.
AddLabel(if squeezePlay then yes else no, " Squeeze Play ", Color.GREEN);

# Add buy zone label if we're in the buy zone
AddLabel(if buyZone then yes else no, "BUY ZONE", Color.GREEN);

TS can be access here: http://tos.mx/0fhkJir
Also available as a Github Gist

Is there a way to add this indicator but not have all the MAs plotted on your chart so I can just add the ones of my choosing outside of this script? Much appreciated!

 

[aztecballr]

​

@karmic ​

I think may be what you are looking for:​

https://usethinkscript.com/threads/multiple-keltner-channel-lines-for-thinkorswim.9317/​

 

[karenjoy511]

Love this code. Edited it just a tiny bit to allow for user to customize label colors.

#SqueezePlay Strategy
#Hint: Displays EMAs (8,21,34,55,89) and labels when EMAs are stacked, price is in the buy zone, and a squeeze is active.
#@Gavstah 10/2021 - Amended 4/2024 by karenjoy511
#Ref: https://usethinkscript.com/threads/squeeze-play-strategy-for-thinkorswim.8664/

input price = close;
DefineGlobalColor("BullLabel", Color.DARK_GREEN);
DefineGlobalColor("BearLabel", Color.MAGENTA);
DefineGlobalColor("BuyZoneLabel", Color.DARK_ORANGE);
DefineGlobalColor(“BullSqueezeLabel”, Color.DARK_GREEN);
DefineGlobalColor(“BearSqueezeLabel”, Color.MAGENTA);

# define EMAs
def ema8_ = ExpAverage(price, 8);
def ema21_ = ExpAverage(price, 21);
#def ema34_ = ExpAverage(price, 34);
#def ema55_ = ExpAverage(price, 55);
#def ema89_ = ExpAverage(price, 89);

# plot EMAs
plot EMA8 = ExpAverage(price, 8);
plot EMA21 = ExpAverage(price, 21);
plot EMA34 = ExpAverage (price, 34);
plot EMA55 = ExpAverage (price, 55);
plot EMA89 = ExpAverage (price, 89);

# is the price in the buy zone?
def buyZone = price < ema8_ and price > ema21_;
def sellZone = price > ema8_ and price < ema21_;
# now, let's see what we have

# 1) is momentum > 0 with an upward trend on the TTM_Squeeze() histogram?
def bullMomentum = TTM_Squeeze().Histogram > 0 && TTM_Squeeze().Histogram > TTM_Squeeze().Histogram[1];
def bearMomentum = TTM_Squeeze().Histogram < 0 && TTM_Squeeze().Histogram < TTM_Squeeze().Histogram[1];

# 2) Has the price closed over the 21 EMA?
def bullcloseOver21 = price > EMA21;
def bearcloseOver21 = price < EMA21;

# 3) Are EMAs stacked in ascending order ("The Royal Setup")?
def bullstackedEMAS = EMA8 > EMA21 and EMA21 > EMA34 and EMA34 > EMA55 and EMA55 > EMA89;
def bearstackedEMAS = EMA8 < EMA21 and EMA21 < EMA34 and EMA34 < EMA55 and EMA55 < EMA89;

# 4) are we in a TTM_squeeze (true if squeezealert has not fired)?
def squeeze = !TTM_Squeeze().SqueezeAlert;

# do we have a squeeze play?
def bullsqueezePlay = squeeze && bullstackedEMAS && bullMomentum && bullcloseOver21;
def bearsqueezePlay = squeeze && bearstackedEMAS && bearMomentum && bearcloseOver21;

# set the stacked label
AddLabel(if bullstackedEMAS then yes else no, ”Bull Stacked EMAs”, GlobalColor("BullLabel"));
AddLabel(if bearstackedEMAS then yes else no, ”Bear Stacked EMAs”, GlobalColor("BearLabel"));

# set Squeeze Play label if we're in a squeeze play.
AddLabel(if bullsqueezePlay then yes else no, " Squeeze Play ", GlobalColor("BullSqueezeLabel"));
AddLabel(if bearsqueezePlay then yes else no, " Squeeze Play ", GlobalColor("BearSqueezeLabel"));

# Add buy zone label if we're in the buy zone
AddLabel(if buyZone then yes else no, "BUY ZONE", GlobalColor("BuyZoneLabel"));
AddLabel(if sellZone then yes else no, "BUY ZONE", GlobalColor("BuyZoneLabel"));

# End