The Big Four Chart SetUp For ThinkOrSwim

[METAL]

If it is okay with admin, and everyone that is using Big4/tmo to trade wants to post daily setups, I'm in. That way we can compare and maybe see something we didn't find. Just a thought.

 

[cocojumbo]

Maybe this will work.

https://imgur.com/a/Ztyeydj

thata after hour so that will mess up the scripts and tmo results. turn off, we only trade market hour signals. I look at 1H and 15min back and forth. I am trying to catch an early signal on 15m if I can for better entry. for example 8am 1H will he red but no big4 signal yet, on 15min you get a signal at 8:30 and I enter at 8;45. 9am the 1H arrow pops and confirms the entry. So I got in 15-30min earlier for example thats all. I have taken many of 1H as well nothing wrong with that bec. I am in the trade for few days up to 2-3 weeks its ok to let it develop. These runs last for a while ok to take a bite of a mid-move and get out with profit. No need to be first in and last out. I am seeing these setups over and over just close and reopen. Lots of credit to @illbdam69 for sharing his watchlist.

 

[Sbollapa]

Illbdam69 can you please check this and let me know

View attachment 19247

View attachment 19248

try this in scan -> thinkScript Editor and rename the Big4_UTS to whatever name you used for Big4 and similarly for TMO
For calls:
Big4_UTS("strategy hold trend" = no)."signal_up" is true and TMO()."Main" is less than TMO()."zero"

for puts:
Big4_UTS("strategy hold trend" = no)."signal_dn" is true and TMO()."Main" is greater than TMO()."zero"
and change the candles you want those for..

 

[METAL]

thata after hour so that will mess up the scripts and tmo results. turn off, we only trade market hour signals. I look at 1H and 15min back and forth. I am trying to catch an early signal on 15m if I can for better entry. for example 8am 1H will he red but no big4 signal yet, on 15min you get a signal at 8:30 and I enter at 8;45. 9am the 1H arrow pops and confirms the entry. So I got in 15-30min earlier for example thats all. I have taken many of 1H as well nothing wrong with that bec. I am in the trade for few days up to 2-3 weeks its ok to let it develop. These runs last for a while ok to take a bite of a mid-move and get out with profit. No need to be first in and last out. I am seeing these setups over and over just close and reopen. Lots of credit to @illbdam69 for sharing his watchlist.

Awesome. Thanks. I turned off my after/pre market hours. Do or have you still traded if the TMO isn't above/below on both 1hr/15m? Just curious if you make sure both are in agreement. As I have been searching for possible setups, I find that the 1Hr may be looking great but the 15m or 30 min TMO is already below/above (Wrong side) the zero line for that specific stock.

 

[illbdam69]

I will try and get back the second screenshot was to show you the details anyway how do you use the fav watchlist to scan if possible and how do you use stop loss

Favorites is my custom watchlist. It's a smaller watchlist of about 200-300 stocks. I haven't counted recently though. I continue to add to it based on Vol, OI, spreads. For example, I just added DASH, DKNG as these have weekly's with nice narrow spreads, and the big 4 (1H) seemed to have worked quite well in the past.

I don't really have a "set" stop loss rule. Which makes me different from most I guess. I definitely don't use hard stops on options...as these will just get used as liquidity. My risk amount for the trade is my ultimate stop loss...in other words I am willing to risk 100% of my trade. However, that is not saying I let all my losers go to -100%. I've had 3 -100% losers since implementing the Big 4 on June 1...out of 45 trades, 38 winners. 5 losing trades total. I have 2 open trades...MRK up 138%. F is down.

RCL 21-JUL 100P trade on July 6 is a good example of how most traders would have stopped out for a loss. I had 4 contracts at $2.25. So $900 at risk. RCL gapped down on 7/6 and big 4 triggered bearish. I took the trade on the 1st candle...as it looked to have broken the range it had been trading in the previous week...however it slowly melted-up higher all day that day and the next. And on Monday the 3rd day...it went down at the open....only to trade higher all day. It bounced off 102 all day. It was an extremely frustrating trade to say the least. I was down at one point over $400. But then on Tuesday 7/11 it finally gave me another big 4 1H bearish signal and finally rolled over. Luckily I had options that didn't expire for 10 more days. This is why it's important to buy yourself some time. I eventually sold these for $2.50 on 7/14 at 11:00 candle. There were only 3-4 more down candles before it reversed and then confirmed Bullish on 7/18. I told myself I am buying calls on RCL when this stock confirms bullish because it just felt being on the Put side the stock really wanted to go higher. So I bought only 2 contracts 100C on 7/17 at $1.34 and sold these for $1.84 on 7/20.

I guess my point to all this is:
1) buy time --- 2-4 week expirations.
2) risk what you're willing to lose 100%
3) give the trade some time to work out...as long as the stock hasn't completely changed profile from your Big 4 entry. Has it gone into a range? If so, then wait for that range to work itself out...If it has started trending again in the wrong direction...then close the trade.

This indicator is fantastic! It's a very powerful trend reversal signa! In all honesty, without sounding overly cocky...My problem has been selling to early and leaving tons of money on the table. However, there are several reasons for this...I am at work Mon-Wed until 3;30. by the time I get home the market is closed. So these 3 days I have to do everything from my phone. I cant watch every tick like I can on Thursday and Fridays. So when I have a winning trade I am more prone to close the trade before they pull the rug out from under me.

I will say though of the 45 trades, 38 winners, 5 losing. My Profit is 28% on all trades including the 3 100% losers. Lot of these trades went on to be huge bangers. But I might have closed for 50-100%.

Once you start trading using the Big 4 on the 1H you will be amazed...You will close a trade out only wishing you had stayed in the trade longer....but there will be trades that frustrate you and you'll have to nurse for a week or so. Or you may need to add to your position on the 2nd signal to bring your cost basis down....But I am true believer this indicator will keep you on the right side of more than 50% of your trades and probably close to 75%. As long as your not risking more than you're willing to lose on a trade....your account will grow.

My winning percentage is 87%...I would love for this to stay this high but I know that overtime it will go down the more trades I make.

 

[illbdam69]

Awesome. Thanks. I turned off my after/pre market hours. Do or have you still traded if the TMO isn't above/below on both 1hr/15m? Just curious if you make sure both are in agreement. As I have been searching for possible setups, I find that the 1Hr may be looking great but the 15m or 30 min TMO is already below/above (Wrong side) the zero line for that specific stock.

If you're day trading then the TMO should be below zero on whatever time frame you are using 1,3,5,10,15. We are swing trading based off the 1H signal...the TMO rule is not required on the lower timeframes..IMO. On the lower timeframes... I only look to see if the stock is retracing back to support/resistant level on the lower timeframe for a possible better entry price...

You should look at the Daily & Weekly to see if the stock is conforms the direction you're getting your signal...However, I will be honest...I have been guilty of taking the trade opposite of this rule...See RCL trade I described above. LOL.

 

[illbdam69]

If you're day trading then the TMO should be below zero on whatever time frame you are using 1,3,5,10,15. We are swing trading based off the 1H signal...the TMO rule is not required on the lower timeframes..IMO. On the lower timeframes... I only look to see if the stock is retracing back to support/resistant level on the lower timeframe for a possible better entry price...

You should look at the Daily & Weekly to see if the stock is conforms the direction you're getting your signal...However, I will be honest...I have been guilty of taking the trade opposite of this rule...See RCL trade I described above. LOL.

@GiantBull who was the think tank behind the Big 4...trades the Big 4 using the 3 min...so I would assume he day trades. I started doing this when I first discovered this thread...but it was just to difficult to keep up with from work.. So I started looking at the 1H signals on several of my stocks in the favorites watchlist and found that it was very powerful setup for swing trading.

On Thursday and Friday's (my off days) I'll trade the SPX using the 3 Min as I discussed above earlier today.

 

[illbdam69]

How has your SPX win percentage been since you started your testing? LLY, EBAY, and JPM looks to be setting up. Let me know if you see the same.

Honestly, I haven't kept up the win percentage of the SPX 3min trades. Maybe if I time I'll go back and put these into a spreadsheet. My win percentage I am discussing is for the 1H setup only. I do like LLY, EBAY and JPM setting up. LLY is a little pricy and the bid/ask spreads are little wider but not horrible. So if LLY confirms a bearish signal...you are looking at risking $1000-$1200/contract for 4-AUG expirations and $1600 for 11-AUG...that is a little much for me currently.

I will mention, when using the Big 4, you can see the rotations in the stock market. A lot of stocks in the same industry will confirm in the same direction. As I was entering MRK. I believe JNJ and PFE were also confirming.

 

[cocojumbo]

Awesome. Thanks. I turned off my after/pre market hours. Do or have you still traded if the TMO isn't above/below on both 1hr/15m? Just curious if you make sure both are in agreement. As I have been searching for possible setups, I find that the 1Hr may be looking great but the 15m or 30 min TMO is already below/above (Wrong side) the zero line for that specific stock.

TMO will be up/down more frequently on those shorter time frames of course. The key is the 1H that is where I respect the 0 line tmo rule for less fakeouts. Lower time frame is just attempt to catch a better entry but I’ve taken many trades from 1H big4 arrow confirmations. If 9am 1H candle triggers big4 signal you can wait till 10am for confirmatio. coulple bucks up or down doesnt mater bec you are in it for a swing that can last few days/weeks. I tried the 3minute day trading but I dont have the time with work. Not at that level yet to trade full time

 

[cocojumbo]

Here is an example I am looking at short candidate next week AMGN. tmo above 0 on D, 4H, 1H. It’s ranging failed to break ~ 236 and looks exausted. big4 triggered on 30min but bounced of 50ma. rejected of supertrend on 1H is very big deal at 236.23. If this resistance holds and big4 down confirmation triggers on 1H, I’ll buy puts here with PTs 231 and 226. Ill do either 11 or 18 august atm or few strikes out trying to stay above -25 delta.

If 236 breaks above supertrend and retests upward w/ volume buys, I’ll skip.

 

[METAL]

Here is an example I am looking at short candidate next week AMGN. tmo above 0 on D, 4H, 1H. It’s ranging failed to break ~ 236 and looks exausted. big4 triggered on 30min but bounced of 50ma. rejected of supertrend on 1H is very big deal at 236.23. If this resistance holds and big4 down confirmation triggers on 1H, I’ll buy puts here with PTs 231 and 226. Ill do either 11 or 18 august atm or few strikes out trying to stay above -25 delta.

If 236 breaks above supertrend and retests upward w/ volume buys, I’ll skip.

Check our IBM. Looks like it could go down to fill the gap. I have a trigger on the 30m.

 

[cocojumbo]

Check our IBM. Looks like it could go down to fill the gap. I have a trigger on the 30m.

30 min big4 triggered down. That would get my attention and I’ll place it on my trade candidate list. On the 1H still too early. price action will test 138.50 supertrend line and may bounce off for continuation or breakdown. IBM is in uptrend, closed january gap at 140 and pauzed as ppl take profit. On 1H I am watching Support/Resistance levels 138-140. It got lot of pr around ai. Next week may present a short opportunity as it decides next leg up imo just watch that 138.5 level. That’s how I incorporate supertrend in the process.

 

[QUIKTDR1]

Check our IBM. Looks like it could go down to fill the gap. I have a trigger on the 30m.

I see the dn trigger in IBM on 30' but I also see the daily up trigger on 0718 Does the 30' trump the daily?

Are you seeing the gap to 133.10 or 129.18? Is TMO upsloping and in resistance zone relevant in analysis?

TYinA!

 

[METAL]

30 min big4 triggered down. That would get my attention and I’ll place it on my trade candidate list. On the 1H still too early. price action will test 138.50 supertrend line and may bounce off for continuation or breakdown. IBM is in uptrend, closed january gap at 140 and pauzed as ppl take profit. On 1H I am watching Support/Resistance levels 138-140. It got lot of pr around ai. Next week may present a short opportunity as it decides next leg up imo just watch that 138.5 level. That’s how I incorporate supertrend in the process.

Do you mind sharing the supertrend you are using. I currently am using:

# Mobius
# SuperTrend
# Chat Room Request
input AtrMult = 1.0;
input nATR = 4;
input AvgType = AverageType.HULL;
input PaintBars = yes;
def ATR = MovingAverage(AvgType, TrueRange(high, close, low), nATR);
def UP = HL2 + (AtrMult * ATR);
def DN = HL2 + (-AtrMult * ATR);
def ST = if close < ST[1] then UP else DN;
plot SuperTrend = ST;
SuperTrend.AssignValueColor(if close < ST then Color.RED else Color.GREEN);
AssignPriceColor(if PaintBars and close < ST

                 then Color.RED

                 else if PaintBars and close > ST

                      then Color.GREEN

                      else Color.CURRENT);

#AddChartBubble(close crosses below ST, low[1], low[1], color.Dark_Gray);
#AddChartBubble(close crosses above ST, high[1], high[1], color.Dark_Gray, no);
# End Code SuperTrend

 

[cocojumbo]

Do you mind sharing the supertrend you are using. I currently am using:

# Mobius
# SuperTrend
# Chat Room Request
input AtrMult = 1.0;
input nATR = 4;
input AvgType = AverageType.HULL;
input PaintBars = yes;
def ATR = MovingAverage(AvgType, TrueRange(high, close, low), nATR);
def UP = HL2 + (AtrMult * ATR);
def DN = HL2 + (-AtrMult * ATR);
def ST = if close < ST[1] then UP else DN;
plot SuperTrend = ST;
SuperTrend.AssignValueColor(if close < ST then Color.RED else Color.GREEN);
AssignPriceColor(if PaintBars and close < ST

                 then Color.RED

                 else if PaintBars and close > ST

                      then Color.GREEN

                      else Color.CURRENT);

#AddChartBubble(close crosses below ST, low[1], low[1], color.Dark_Gray);
#AddChartBubble(close crosses above ST, high[1], high[1], color.Dark_Gray, no);
# End Code SuperTrend

I use the tomsk cci atr trend. https://usethinkscript.com/threads/supertrend-cci-atr-trend-for-thinkorswim.1090/#post-9561

 

[smallstacks]

30 min big4 triggered down. That would get my attention and I’ll place it on my trade candidate list. On the 1H still too early. price action will test 138.50 supertrend line and may bounce off for continuation or breakdown. IBM is in uptrend, closed january gap at 140 and pauzed as ppl take profit. On 1H I am watching Support/Resistance levels 138-140. It got lot of pr around ai. Next week may present a short opportunity as it decides next leg up imo just watch that 138.5 level. That’s how I incorporate supertrend in the process.

Just my 2 cents I am no expert but ibm on 1 hr and 4 hr could go either way it has hit a supply zone it can either come down or break it going up but time will tell this week

 

[cocojumbo]

Just my 2 cents I am no expert but ibm on 1 hr and 4 hr could go either way it has hit a supply zone it can either come down or break it going up but time will tell this week

agree that 138.5 level will tell us more next week. I’d say its likely it will continue uptrend and not a good idea to trade against trend. With good risk management however, nothing wrong to take a few points if this breaks down as it cools and resets.

 

[METAL]

Just my 2 cents I am no expert but ibm on 1 hr and 4 hr could go either way it has hit a supply zone it can either come down or break it going up but time will tell this week

My same thoughts. I just saw adown trigger and was giving a heads up. it is TBD.

 

[AspaTrader]

Ok Guys, I am gonna test this from today I will keep updating the progress.

30 Mins:
1. HA candles (https://usethinkscript.com/threads/smoothed-heikin-ashi-for-thinkorswim.216/)
2. Confirmation Candles (https://usethinkscript.com/threads/confirmation-candles-indicator-for-thinkorswim.6316/) Just the lines and no candle colors.
3. Custom Fib Levels built for HA ( I have uploaded for fib and wedges : https://usethinkscript.com/threads/heikin-ashi-hull-tmo-zigzag-chart-setup.13360/#post-54717)
4. TMO with settings specified here 30,6,6
5. Buy Sell with Targets (Custom)

1 Hour Panel:
1. Buy Sell with Targets (Custom)
2. Confirmation Candles (https://usethinkscript.com/threads/confirmation-candles-indicator-for-thinkorswim.6316/) Just the lines and no candle colors.
3. Buy sell label: https://usethinkscript.com/threads/tue-adx-macd-confluence-for-thinkorswim.15937/ with MACD (18,50,100)
4. TMO with 30,6,6

 

[AspaTrader]

Good Morning Team:
NKE first green:
Watching NKE 08/18 110C