The Importance of Set Ups For ThinkOrSwim

T

Thomas

Guest
People have to stop focusing on the indicators and focus on set ups.....is there a conversation on set ups.....thinking set ups, and only set ups.....
 
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People have to stop focusing on the indicators and focus on set ups.....is there a conversation on set ups.....thinking set ups, and only set ups.....
@Thomas Indicators are still useful, however, as long as they are'nt overly relied on. @MerryDay's post on multicollinearity is helpful for those learning to trade using technical analysis as it teaches how to avoid relying on too many similar indicators that show the same data in slightly different ways.
I do agree though that setups are key to successful trading, as long as it incorporates risk management; if someone has the best setup yet does'nt practice risk management, they will ultimately fail. Have you thought of starting a conversation on setups? It would be very helpful, not only for new traders, but for all members here.
 
@Thomas Indicators are still useful, however, as long as they are'nt overly relied on. @MerryDay's post on multicollinearity is helpful for those learning to trade using technical analysis as it teaches how to avoid relying on too many similar indicators that show the same data in slightly different ways.
I do agree though that setups are key to successful trading, as long as it incorporates risk management; if someone has the best setup yet does'nt practice risk management, they will ultimately fail. Have you thought of starting a conversation on setups? It would be very helpful, not only for new traders, but for all members here.
What I observed reading an indicator site is the importance is placed on what the indicator is doing, not price. Scans detecting what programmed information is released is one of the most important least discussed subjects. Scans producing ever increasing volume is another long and short, secret. That section on volume, RVOL, extreme volume really is important, a clean chart, black and white candles and the picture becomes simply clear. Bill Murray's only indicator on bottom of chart, an accumulation/distribution line with the stochastic, or volume only, taking a cluttered chart, a cluttered strategy, to simplicity. This new self taught trader I discovered uses two techniques to enter. It's my lightbulb on a lightbulb, "EXTREMELY, EXTREMELY!!," effective, don't let this book cover scare you., or the naive introduction of the video,... I watched this multiple times.
 
Last edited by a moderator:
Volprofile_zzz https://tos.mx/e4BsPhb
3tGj8lP.png

Ruby:
#Use on Stocks Only
#If Chart Days Displayed are not adequate for the number of weeks input, then a lable will appear
#VAH, VAL = 70% of where volume went off in a period (DAY). POC == greatest Volume in same period.
input no_of_weeks = 1;
def ymd      = GetYYYYMMDD();
def ok       = !IsNaN(close);
def capture  = ok and ymd != ymd[1];
def dayCount = CompoundValue(1, if capture
                                then dayCount[1] + 1
                                else dayCount[1], 0);
def thisDay  = (HighestAll(dayCount) - dayCount) + 1;
input onexpansion = no;
input priceperrow = PricePerRow.TICKSIZE;
AddLabel(1, if DaysFromDate(First(GetYYYYMMDD())) - DaysFromDate(GetYYYYMMDD()) < 7 * no_of_weeks
            then "Number of Days Less Than 5, Increase Chart Days Displayed"
            else "", color.white);
profile vol   = VolumeProfile("startNewProfile" = thisDay > 5 * no_of_weeks , "onExpansion" = onexpansion, pricePerRow = priceperrow, numberOfProfiles = 1);
vol.Show("va color" = Color.black);#Original color.yellow
plot val = vol.GetLowestValueArea();
plot vah = vol.GetHighestValueArea();
plot poc = vol.GetPointOfControl();
poc.SetDefaultColor(Color.RED);
poc.SetLineWeight(5);
 
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Vol at Price https://tos.mx/6kvLT1S
bmdjW8R.png

Ruby:
#HINT: This study plots volume that occured at different prices.  For example, if timePerProfile of CHART is selected then net total volume of the horizontal volume-by-price will be equal to the net total volume of the vertical volume bars under the chart.\n\n Use horizontal volume-by-price to find areas of hidden support/resistance by noticing prices where largest volume occured.\n.


input pricePerRowHeightMode = {default AUTOMATIC, TICKSIZE, CUSTOM};
input customRowHeight = 1.0;
input timePerProfile = {default CHART, MINUTE, HOUR, DAY, WEEK, MONTH, "OPT EXP", BAR}; #HINT timePerProfile: If onExpansion is set to no, select CHART to have horizontal volume-by-price include all volume for entire chart. Or select an aggregation period to show horizontal volume-by-price include only total volume for that time period (for example select MONTH to show only 1 month of volume on aa 1-year daily chart)
input onExpansion = no; #HINT onExpansion: no will plot horizontal volume-by-price bars under the chart bars/candles.  onExpansion yes will plot in the extra space to right of the chart.
input opacity = 20; #HINT opacity: If onExpansion is set to no, DECREASE the opacity number to make price bars/candles easier to see on top of the horizontal volume-by-price bars
input profiles = 1000; #HINT profiles: The numberOfProfiles parameter defines the number of profiles to be displayed if onExpansion is set to no. If onExpansion is set to yes then this parameter is ignored and only one profile is shown.
input multiplier = 1;


def period;
def yyyymmdd = getYyyyMmDd();
def seconds = secondsFromTime(0);
def month = getYear() * 12 + getMonth();
def day_number = daysFromDate(first(yyyymmdd)) + getDayOfWeek(first(yyyymmdd));
def dom = getDayOfMonth(yyyymmdd);
def dow = getDayOfWeek(yyyymmdd - dom + 1);
def expthismonth = (if dow > 5 then 27 else 20) - dow;
def exp_opt = month + (dom > expthismonth);
switch (timePerProfile) {
case CHART:
    period = 0;
case MINUTE:
    period = floor(seconds / 60 + day_number * 24 * 60);
case HOUR:
    period = floor(seconds / 3600 + day_number * 24);
case DAY:
    period = countTradingDays(min(first(yyyymmdd), yyyymmdd), yyyymmdd) - 1;
case WEEK:
    period = floor(day_number / 7);
case MONTH:
    period = floor(month - first(month));
case "OPT EXP":
    period = exp_opt - first(exp_opt);
case BAR:
    period = barNumber() - 1;
}

def count = CompoundValue(1, if period != period[1] then (count[1] + period - period[1]) % multiplier else count[1], 0);
def cond = count < count[1] + period - period[1];
def height;
switch (pricePerRowHeightMode) {
case AUTOMATIC:
    height = PricePerRow.AUTOMATIC;
case TICKSIZE:
    height = PricePerRow.TICKSIZE;
case CUSTOM:
    height = customRowHeight;
}

profile volumeByPrice = volumeProfile("startNewProfile" = cond, "onExpansion" = onExpansion, "numberOfProfiles" = profiles, "pricePerRow" = height);

DefineGlobalColor("Profile", color.CYAN);

volumeByPrice.show(globalColor("Profile"), color.CURRENT, color.CURRENT, opacity);
 
Last edited by a moderator:
What I observed reading an indicator site is the importance is placed on what the indicator is doing, not price. Scans detecting what programmed information is released is one of the most important least discussed subjects. Scans producing ever increasing volume is another long and short, secret. That section on volume, RVOL, extreme volume really is important, a clean chart, black and white candles and the picture becomes simply clear. Bill Murray's only indicator on bottom of chart, an accumulation/distribution line with the stochastic, or volume only, taking a cluttered chart, a cluttered strategy, to simplicity. This new self taught trader I discovered uses two techniques to enter. It's my lightbulb on a lightbulb, "EXTREMELY, EXTREMELY!!," effective, don't let this book cover scare you., or the naive introduction of the video,... I watched this multiple times.
@Thomas very interested in the view you've expressed here, would you be willing to chare your chart setup please?
 
@Thomas very interested in the view you've expressed here, would you be willing to chare your chart setup please?
I don't mind sharing, but you will be disappointed. I began using what I felt was the simplest chart, the kid in the video explained how indicators, multiple indicators were causing him to miss an entry because of conflicting signals, so slowly, he elimination one by one. My charts were simple, so, I went to volume and price. I count on the scans, then a few trendlines for entries. It doesn't interfere with the community here, but can influence how a scan is built? http://tos.mx/zu7W1qs
phPPhUl.png
 
Last edited by a moderator:
@Thomas The share is very much appreciated. You are right though, my education so far simply wouldn't allow me to trade using such simplicity, I can't see the matrix without some pretty indicators yet.
 

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