The Big Four Chart SetUp For ThinkOrSwim

[Darth Tradicus]

Here's my trade today on SPY 1M along with another indicator that may help weed out more false signals. I spent last night flipping through the indicator library from this site, giving many different ones a try and from what I can tell, the Stoplight Indicator posted by Floydddd seems to work well as an additional confirmation. From what I've observed looking through the last few weeks, whenever the Big4 triggers and the Stoplight indicator has dots(above the bottom two rows of dots which are almost always there) it seems to confirm a legit reversal. When the dots aren't present most of the time it seems to be a fakeout or at least doesn't run very far. IMPORTANT** It for now only looks to work well on the 1 minute time frame, so it may need some tweaking for others. Here's today:



As you can see, as we were putting in lower highs near the HOD, I was looking for the color change for a reversal. 2 fakeouts that the Stoplight indicator caught. Note it did not catch the 3rd fakeout, however by then I had observed the chop and played it safe. Also note, we triggered LONG two candles later, but I stayed out because of the chop, preferring to see push above the HOD and pullback before entry but the darn thing just kept running... oh well.

Next here is my trade that came at around 10:16-


After missing that frustrating run up, Finally got the signal with dots on the Stoplight. Took the trade. It turned into a real chop downward, came close to stopping me but eventually broke. I lowered my stop first to break even and then just above Initial Balance High (1 HR HOD White Dash Line) hoping for it to trickle and chop it's way lower but I got stopped out by a bastard monster candle that popped up in a split second. Was up $40/contract but still ended up with $20. After that you can see that the Stoplight caught another fake signal and we've been chopping thru sideways garbage ever since.

I'm gonna keep the Stoplight as part of this trading setup for now as it seems to help a lot more than hurt. Like any confirmation, it will probably keep you out of a good trade every once in a while but seems to help more often than not. I looked at it on a few other time frames and it didn't seem to work, so it would probably need some tweaking from you modders. Odd to me that it works at all IMHO, as the Stoplight Indicator is meant to detect where the directional movement is putting on the brakes. But for now I'm just not gonna question it lol.

***Also forgot to mention, that Stoplight Dots don't seem to be necessary on a continuation of the trend- ex if you are short/red and you get a pullback that turns green(without dots) and goes nowhere but then just after you get a red candle + TMO confirmation, It looks like dots being there don't matter.

http://tos.mx/AKQy15E

 

[Darth Tradicus]

So after struggling on my one trade and deciding to quit cuz it turned to crap, look what the little jerk does

 

[jrock8903]

So after struggling on my one trade and deciding to quit cuz it turned to crap, look what the little jerk does

Searching for it, but not finding it. Is there somewhere that explains how the indicator works and what all the dots mean?

 

[Darth Tradicus]

Searching for it, but not finding it. Is there somewhere that explains how the indicator works and what all the dots mean?

Posted my chart above- not sure if its working. But I think this is where I found it:

https://usethinkscript.com/threads/need-help-aligning-stoplight-bubbles.7045/

The dots are multiple indicators: turning, dmi, stochastics, keltner, rsi, ppo, X+, some I'm not familiar with, but I think the idea is that when you see a cluster of dots you're looking for a price reversal. However with Big4 on the 1M it seems to usually work the opposite by causing to signal a stronger trend- like when rsi signals overbought/oversold but instead stays in either the upper or lower zone when the stock is trending...

maybe its just lag, or maybe it's just how it aligns with Big4, i dunno. but it works fairly consistently looking backward on 1M and it worked for me today so I'll take it Play with it and see what you come up with.

 

[markallenwilson1016]

Newest Version v1.5
Here is the latest update. Also added labels.

View attachment 17857

# The Big Four Indicator
# https://usethinkscript.com/threads/the-big-four-chart-setup.14711/
# v1.0 - GiantBull and TradingNumbers
# v1.1 - TradingNumbers - hiding vertical lines by ddefault and added arrows
# v1.2 - TradingNumbers - added TMO
# v1.3 - TradingNumbers - hold trend input added
# v1.4 - TradingNumbers - simplified options, added filter with TMO, and set conditions per GianBull parameters
# v1.5 - TradingNumbers - removed TMO color filter percentChg GiantBull, added labels

# Info Labels

input showLabels = yes;
AddLabel(showLabels, " The Big Four v1.5 ", Color.WHITE);

# AK Trend

def aktrend_input1 = 3;
def aktrend_input2 = 8;
def aktrend_price = close;

def aktrend_fastmaa = MovAvgExponential(aktrend_price, aktrend_input1);
def aktrend_fastmab = MovAvgExponential(aktrend_price, aktrend_input2);
def aktrend_bspread = (aktrend_fastmaa - aktrend_fastmab) * 1.001;

def cond1_UP = if aktrend_bspread > 0 then 1 else 0;
def cond1_DN = if aktrend_bspread <= 0 then -1 else 0;

# ZSCORE

def zscore_price = close;
def zscore_length = 20;
def zscore_ZavgLength = 20;

def zscore_oneSD = StDev(zscore_price, zscore_length);
def zscore_avgClose = SimpleMovingAvg(zscore_price, zscore_length);
def zscore_ofoneSD = zscore_oneSD * zscore_price[1];
def zscore_Zscorevalue = ((zscore_price - zscore_avgClose) / zscore_oneSD);
def zscore_avgZv = Average(zscore_Zscorevalue, 20);
def zscore_Zscore = ((zscore_price - zscore_avgClose) / zscore_oneSD);
def zscore_avgZscore = Average(zscore_Zscorevalue, zscore_ZavgLength);

def cond2_UP = if zscore_Zscore > 0 then 1 else 0;
def cond2_DN = if zscore_Zscore <= 0 then -1 else 0;

# Ehlers

def ehlers_length = 34;

def ehlers_price = (high + low) / 2;
def ehlers_coeff = ehlers_length * ehlers_price * ehlers_price - 2 * ehlers_price * Sum(ehlers_price, ehlers_length)[1] + Sum(ehlers_price * ehlers_price, ehlers_length)[1];
def ehlers_Ehlers = Sum(ehlers_coeff * ehlers_price, ehlers_length) / Sum(ehlers_coeff, ehlers_length);

def cond3_UP = if close > ehlers_Ehlers then 1 else 0;
def cond3_DN = if close <= ehlers_Ehlers then -1 else 0;

# Anchored Momentum

def amom_src = close;
def amom_MomentumPeriod = 10;
def amom_SignalPeriod = 8;
def amom_SmoothMomentum = no;
def amom_SmoothingPeriod = 7;

def amom_p = 2 * amom_MomentumPeriod + 1;
def amom_t_amom = if amom_SmoothMomentum == yes then ExpAverage(amom_src, amom_SmoothingPeriod) else amom_src;
def amom_amom = 100 * ( (amom_t_amom / ( Average(amom_src, amom_p)) - 1));
def amom_amoms = Average(amom_amom, amom_SignalPeriod);


def cond4_UP = if amom_amom > 0 then 1 else 0;
def cond4_DN = if amom_amom <= 0 then -1 else 0;

# TMO

def tmo_length = 30; #def 14
def tmo_calcLength = 6; #def 5
def tmo_smoothLength = 6; #def 3

def tmo_data = fold i = 0 to tmo_length with s do s + (if close > GetValue(open, i) then 1 else if close < GetValue(open, i) then - 1 else 0);
def tmo_EMA5 = ExpAverage(tmo_data, tmo_calcLength);
def tmo_Main = ExpAverage(tmo_EMA5, tmo_smoothLength);
def tmo_Signal = ExpAverage(tmo_Main, tmo_smoothLength);
def tmo_color = if tmo_Main > tmo_Signal then 1 else -1;

def cond5_UP = if tmo_Main <= 0 then 1 else 0;
def cond5_DN = if tmo_Main >= 0 then -1 else 0;

# Strategy

input Strategy_Confirmation_Factor = 4;
input Strategy_FilterWithTMO = no;
input Strategy_ColoredCandlesOn = yes;
input Strategy_VerticalLinesOn = no;
input Strategy_HoldTrend = yes;

def cond_UP = cond1_UP + cond2_UP + cond3_UP + cond4_UP;
def cond_DN = cond1_DN + cond2_DN + cond3_DN + cond4_DN;

def direction = if cond_UP >= Strategy_Confirmation_Factor and (!Strategy_FilterWithTMO or cond5_UP) then 1
                else if cond_DN <= -Strategy_Confirmation_Factor and (!Strategy_FilterWithTMO or cond5_DN) then -1
                else if !Strategy_HoldTrend and direction[1] == 1 and cond_UP < Strategy_Confirmation_Factor and cond_DN > -Strategy_Confirmation_Factor then 0
                else if !Strategy_HoldTrend and direction[1] == -1 and cond_DN > -Strategy_Confirmation_Factor and cond_UP < Strategy_Confirmation_Factor then 0
                else direction[1];

plot signal_up = direction == 1 and direction[1] < 1;
signal_up.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);
signal_up.SetDefaultColor(Color.WHITE);
signal_up.Hide();
signal_up.HideBubble();
signal_up.HideTitle();

plot signal_dn = direction == -1 and direction[1] > -1;
signal_dn.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_DOWN);
signal_dn.SetDefaultColor(Color.WHITE);
signal_dn.Hide();
signal_dn.HideBubble();
signal_dn.HideTitle();

AssignPriceColor(if Strategy_ColoredCandlesOn then if direction == 1 then Color.LIGHT_GREEN else if direction == -1 then Color.RED else Color.GRAY else Color.CURRENT);

AddLabel(showLabels, if Strategy_ColoredCandlesOn then if direction == 1 then " Bullish " else if direction == -1 then " Bearish " else " Neutral " else " N/A ",
                     if Strategy_ColoredCandlesOn then if direction == 1 then Color.LIGHT_GREEN else if direction == -1 then Color.RED else Color.GRAY else Color.BLACK);

AddVerticalLine(Strategy_VerticalLinesOn and signal_up, "Buy", Color.LIGHT_GREEN);
AddVerticalLine(Strategy_VerticalLinesOn and signal_dn, "Sell", Color.RED);

Alert(signal_up[1], "Buy", Alert.BAR, Sound.DING);
Alert(signal_dn[1], "Sell", Alert.BAR, Sound.DING);

Has anyone ever tried this strategy for swing trades with success?

 

[JOSHTHEBANKER]

Has anyone ever tried this strategy for swing trades with success?

yes it works! I use it on the 1hr timeframe

 

[camerdr]

Please could someone help me add an arrow when close is greater or lower than the 50 EMA on the Big4 indicator bellow? Thanks in advance.



# The Big Four Indicator
# https://usethinkscript.com/threads/the-big-four-chart-setup.14711/
# v1.0 - GiantBull and TradingNumbers
# v1.1 - TradingNumbers - hiding vertical lines by ddefault and added arrows
# v1.2 - TradingNumbers - added TMO
# v1.3 - TradingNumbers - hold trend input added
# v1.4 - TradingNumbers - simplified options, added filter with TMO, and set conditions per GianBull parameters
# v1.5 - TradingNumbers - removed TMO color filter percentChg GiantBull, added labels

# Info Labels

input showLabels = yes;
AddLabel(showLabels, " The Big Four v1.5 ", Color.WHITE);

# AK Trend

def aktrend_input1 = 3;
def aktrend_input2 = 8;
def aktrend_price = close;

def aktrend_fastmaa = MovAvgExponential(aktrend_price, aktrend_input1);
def aktrend_fastmab = MovAvgExponential(aktrend_price, aktrend_input2);
def aktrend_bspread = (aktrend_fastmaa - aktrend_fastmab) * 1.001;

def cond1_UP = if aktrend_bspread > 0 then 1 else 0;
def cond1_DN = if aktrend_bspread <= 0 then -1 else 0;

# ZSCORE

def zscore_price = close;
def zscore_length = 20;
def zscore_ZavgLength = 20;

def zscore_oneSD = StDev(zscore_price, zscore_length);
def zscore_avgClose = SimpleMovingAvg(zscore_price, zscore_length);
def zscore_ofoneSD = zscore_oneSD * zscore_price[1];
def zscore_Zscorevalue = ((zscore_price - zscore_avgClose) / zscore_oneSD);
def zscore_avgZv = Average(zscore_Zscorevalue, 20);
def zscore_Zscore = ((zscore_price - zscore_avgClose) / zscore_oneSD);
def zscore_avgZscore = Average(zscore_Zscorevalue, zscore_ZavgLength);

def cond2_UP = if zscore_Zscore > 0 then 1 else 0;
def cond2_DN = if zscore_Zscore <= 0 then -1 else 0;

# Ehlers

def ehlers_length = 34;

def ehlers_price = (high + low) / 2;
def ehlers_coeff = ehlers_length * ehlers_price * ehlers_price - 2 * ehlers_price * Sum(ehlers_price, ehlers_length)[1] + Sum(ehlers_price * ehlers_price, ehlers_length)[1];
def ehlers_Ehlers = Sum(ehlers_coeff * ehlers_price, ehlers_length) / Sum(ehlers_coeff, ehlers_length);

def cond3_UP = if close > ehlers_Ehlers then 1 else 0;
def cond3_DN = if close <= ehlers_Ehlers then -1 else 0;

# Anchored Momentum

def amom_src = close;
def amom_MomentumPeriod = 10;
def amom_SignalPeriod = 8;
def amom_SmoothMomentum = no;
def amom_SmoothingPeriod = 7;

def amom_p = 2 * amom_MomentumPeriod + 1;
def amom_t_amom = if amom_SmoothMomentum == yes then ExpAverage(amom_src, amom_SmoothingPeriod) else amom_src;
def amom_amom = 100 * ( (amom_t_amom / ( Average(amom_src, amom_p)) - 1));
def amom_amoms = Average(amom_amom, amom_SignalPeriod);


def cond4_UP = if amom_amom > 0 then 1 else 0;
def cond4_DN = if amom_amom <= 0 then -1 else 0;

# TMO

def tmo_length = 30; #def 14
def tmo_calcLength = 6; #def 5
def tmo_smoothLength = 6; #def 3

def tmo_data = fold i = 0 to tmo_length with s do s + (if close > GetValue(open, i) then 1 else if close < GetValue(open, i) then - 1 else 0);
def tmo_EMA5 = ExpAverage(tmo_data, tmo_calcLength);
def tmo_Main = ExpAverage(tmo_EMA5, tmo_smoothLength);
def tmo_Signal = ExpAverage(tmo_Main, tmo_smoothLength);
def tmo_color = if tmo_Main > tmo_Signal then 1 else -1;

def cond5_UP = if tmo_Main <= 0 then 1 else 0;
def cond5_DN = if tmo_Main >= 0 then -1 else 0;

# Strategy

input Strategy_Confirmation_Factor = 4;
input Strategy_FilterWithTMO = no;
input Strategy_ColoredCandlesOn = yes;
input Strategy_VerticalLinesOn = no;
input Strategy_HoldTrend = yes;

def cond_UP = cond1_UP + cond2_UP + cond3_UP + cond4_UP;
def cond_DN = cond1_DN + cond2_DN + cond3_DN + cond4_DN;

def direction = if cond_UP >= Strategy_Confirmation_Factor and (!Strategy_FilterWithTMO or cond5_UP) then 1
else if cond_DN <= -Strategy_Confirmation_Factor and (!Strategy_FilterWithTMO or cond5_DN) then -1
else if !Strategy_HoldTrend and direction[1] == 1 and cond_UP < Strategy_Confirmation_Factor and cond_DN > -Strategy_Confirmation_Factor then 0
else if !Strategy_HoldTrend and direction[1] == -1 and cond_DN > -Strategy_Confirmation_Factor and cond_UP < Strategy_Confirmation_Factor then 0
else direction[1];

plot signal_up = direction == 1 and direction[1] < 1;
signal_up.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);
signal_up.SetDefaultColor(Color.WHITE);
signal_up.Hide();
signal_up.HideBubble();
signal_up.HideTitle();

plot signal_dn = direction == -1 and direction[1] > -1;
signal_dn.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_DOWN);
signal_dn.SetDefaultColor(Color.WHITE);
signal_dn.Hide();
signal_dn.HideBubble();
signal_dn.HideTitle();

 

[useThinkScript]

Unfortunately, the OP is no longer providing support for this setup.
Therefore this thread has been closed down.

Most questions have been answered; somewhere within the almost 20 pages of this thread.
Here is a cool hack for searching huge threads such as this one:
https://usethinkscript.com/threads/answers-to-commonly-asked-questions.6006/#post-58238

@camerdr