Repaints The PAM High Low Chart Setup For ThinkOrSwim

[OGOptionSlayer]

can anyone explain the blue arrows,,,what they mean versus the buy put?

Just disable the blue arrows. The entry on this setup is very simple. The solid line is your entry once the next candle closes above/below it (calls/puts). The dotted line is your stop loss. Get out if it crosses it and closes. Don't take any other signal except that. Also, on shorter timeframes, set it to a longer length. I found 30 works well on 1m to 5m. 20 bars are perfect for 15m and that's where I recommend you do most of your trading with this indicator. It literally works masterfully on that timeframe. I will try to post more about it soon and the particular setups I look for.

I also only trade $SPY, $SPX, $AAPL, and $TSLA but I'm about to start branching out because this indicator can trade any market and be effective.

 

[OGOptionSlayer]

Indicator nailed a $5 drop on $SPY this morning. I stand strongly by using this on the 15m timeframe. It's a straight killer on that timeframe and you don't get as many false signals as you get on the 1m to 5m. If you like the 10m, it's good for that too but I still think the 15m and above are the absolute best timeframes to use it on. You have to manage your risks better if you try to scalp at lower levels with it but it's very possible and it's what I do all day.

If trying to use it on lower timeframes, you must have the 15m and I use the 65m timeframes to ensure the candle that I'm in has made a LL. If it has, I know that the trend is still going. I also confirm this using Squeeze Pro (or TTM Squeeze) following John Carter's theory of when to get out of a reversal. If the Squeeze Pro or TTM Squeeze has two consecutive bars that turn a different color (ex: on puts, the red bars have two yellow consecutively instead of red), then I know that the trend is over and I need to exit and look for a new position.

This tool is great to combine with either of those tools to ensure you are in the trend but also allowing you to keep in the trade when the market makers are trying to shake you out. So your runners run better than they would have if you were only using this indicator alone. TTM Squeeze is free and every trader should have that in their arsenal as a minimum.

 

[Intrinsic Knowledge]

can anyone explain the blue arrows,,,what they mean versus the buy put?

Hi bro, the blue arrow is considered "Top" and "Bottom". Or the highest point and the lowest point within the 20 bars. Hope this helps. Cheers

 

[Trader Raider]

This tool is great to combine with either of those tools

Really appreciate what you and @halcyonguy have done on this thread! This method plays very well with fibs so it's right up my alley. THANK YOU for sharing!

 

[Kislayakanan]

https://imgur.com/a/Hqb2iQi

Thank you for sharing this indicator, reading the comments it looks amazing. I am still little confuse about entry and exist. I see one dashed line ,one solid line and one bubble for Put/calls. I see the bubble shows up after the last candle closed below/above the solid line. So I am not sure when is the entry and exist for this?
Second question: What does test mean in the indicator?

 

[OGOptionSlayer]

https://imgur.com/a/Hqb2iQi

Thank you for sharing this indicator, reading the comments it looks amazing. I am still little confuse about entry and exist. I see one dashed line ,one solid line and one bubble for Put/calls. I see the bubble shows up after the last candle closed below/above the solid line. So I am not sure when is the entry and exist for this?
Second question: What does test mean in the indicator?

Hey, so this indicator is meant to be as simple as possible.

The solid line is your entry once the candle crosses it and closes. I often take positions prior to the candle close because that solid line is the support/resistance zone that you're taking advantage of. Often time, that first candle is the biggest mover and I'm willing to risk 20-30% loss if it does reverse, which does happen especially on lower timeframes.

The dotted line is simply your stop loss. If price action crosses it and it CLOSES, and it HAS TO CLOSE, no exceptions, then you exit the position. Wait for a better entry.
If you use this indicator on the 15m chart, you are going to see that this rarely happens. The reason it is so effective is because you are finding the top or bottom in the last 20 candles and this gives you a good entry on reversals.

If you do use it on lower timeframes, say 1m to 5m (I even recommend it on 10m), then you need to set your bars to be at least 30 where you don't get as many poor entry signals.

Please recommend any feedback you have. I think this indicator is priceless but I'm biased.

One thing I will say is if the candle is an outside bar candle, it means the market is undecided and I would wait for a better entry. There are plenty of markets out there.

@halcyonguy and I have to work on designing a scanner and maybe cleaning the code up. But man this thing is killer.

 

[OGOptionSlayer]

Really appreciate what you and @halcyonguy have done on this thread! This method plays very well with fibs so it's right up my alley. THANK YOU for sharing!

You are exactly right, if you combine this with Fibonacci retracements, it's killer. Also, you will see that most of your signals will come when Fibonacci clusters occur and that's always a good signal to get in. I love the indicator. @halcyonguy and I have to do some more hashing out of the trailing stop loss and take profit levels but those are always objective and according to an individual trader's risk management.

I'm trying to help new traders be successful in the market by providing free tools and this setup has always been my number one money maker. If you learn to use it, I think you will agree as well.

 

[Trader Raider]

Please recommend any feedback you have. I think this indicator is priceless but I'm biased.

LOL

What I did was convert it to a strategy in order to back test to find the optimal "last N" length for signal candles. Then I painted candles based on squeeze histo colors (typically a 9-length squeeze on most timeframes). Those candle colors really help frame the price action nicely.

Anyhow, thanks again for sharing your strat with us. It's given me additional opportunities at times of day I didn't typically trade. Sorry I cannot share any code but I'm thinkScript-illiterate so have to resort to another language and platform for optimization and tinkering.

Anyhow, thanks again. Best wishes and happy trading!

 

[halcyonguy]

Thank you for sharing this indicator, reading the comments it looks amazing. I am still little confuse about entry and exist. I see one dashed line ,one solid line and one bubble for Put/calls. I see the bubble shows up after the last candle closed below/above the solid line. So I am not sure when is the entry and exist for this?
Second question: What does test mean in the indicator?

...bubble shows up after the last candle closed below/above the solid line...

there is an input , to choose when buy signals appear. during the current candle or after it closes.

input buy_type = { default completed_bar , active_bar };


often i add test code to display variable values, to help debugging. sometimes i leave them in.

 

[Kislayakanan]

Hey, so this indicator is meant to be as simple as possible.

The solid line is your entry once the candle crosses it and closes. I often take positions prior to the candle close because that solid line is the support/resistance zone that you're taking advantage of. Often time, that first candle is the biggest mover and I'm willing to risk 20-30% loss if it does reverse, which does happen especially on lower timeframes.

The dotted line is simply your stop loss. If price action crosses it and it CLOSES, and it HAS TO CLOSE, no exceptions, then you exit the position. Wait for a better entry.
If you use this indicator on the 15m chart, you are going to see that this rarely happens. The reason it is so effective is because you are finding the top or bottom in the last 20 candles and this gives you a good entry on reversals.

If you do use it on lower timeframes, say 1m to 5m (I even recommend it on 10m), then you need to set your bars to be at least 30 where you don't get as many poor entry signals.

Please recommend any feedback you have. I think this indicator is priceless but I'm biased.

One thing I will say is if the candle is an outside bar candle, it means the market is undecided and I would wait for a better entry. There are plenty of markets out there.

@halcyonguy and I have to work on designing a scanner and maybe cleaning the code up. But man this thing is killer.

More questions

Thank you, esentially you wait for the candle to crossover the solid lines on either direction on 15 min chart?
Follow up question, what is the use the call and puts bubbles?
And, secondly, are you using any other indicator for confirmation?
Are you buying 0dte calls/puts?

 

[OGOptionSlayer]

I describe a couple of posts above about how well this works with TTM Squeeze or Squeeze Pro. I would always have one of those in my trading toolbox.

The call and put bubbles are just an indication that you should buy puts or calls because the candle has crossed and closed over the trigger which causes the bubble to appear.

I state above also that I often take the trade prior to the candle close because the candle that usually breaks the support/resistance level tends to be the biggest move.

I do trade 0dte's however if you are a beginning trader, I strongly recommend against doing so. It's still a lotto because there is so much manipulation on those from institutional and market-mover traders trying to cash in on credit/debit spreads. If you trade 0dte's you should always use some type of flow tool to see where the big money is at. I usually filter 0 dte, >$100k, Open Interest to see where the market is going to be trending soon.

 

[Kislayakanan]

I describe a couple of posts above about how well this works with TTM Squeeze or Squeeze Pro. I would always have one of those in my trading toolbox.

The call and put bubbles are just an indication that you should buy puts or calls because the candle has crossed and closed over the trigger which causes the bubble to appear.

I state above also that I often take the trade prior to the candle close because the candle that usually breaks the support/resistance level tends to be the biggest move.

I do trade 0dte's however if you are a beginning trader, I strongly recommend against doing so. It's still a lotto because there is so much manipulation on those from institutional and market-mover traders trying to cash in on credit/debit spreads. If you trade 0dte's you should always use some type of flow tool to see where the big money is at. I usually filter 0 dte, >$100k, Open Interest to see where the market is going to be trending soon.

Got it, I have never used TTM squeeze, need to learn on how to use it.

https://imgur.com/a/xFswMiX

You would enter in the circle? or candle right of the circle while it is crossing the line?
Secondly, lets say you enter a position and close it. Do you wait for new lines to be formed for new postion?
(Sorry, I might be asking basic questions but I really want to learn and use this)

 

[Khahuy12]

Got it, I have never used TTM squeeze, need to learn on how to use it.

https://imgur.com/a/xFswMiX

You would enter in the circle? or candle right of the circle while it is crossing the line?

Got it, I have never used TTM squeeze, need to learn on how to use it.

https://imgur.com/a/xFswMiX

You would enter in the circle? or candle right of the circle while it is crossing the line?

Hey, so this indicator is meant to be as simple as possible.

The solid line is your entry once the candle crosses it and closes. I often take positions prior to the candle close because that solid line is the support/resistance zone that you're taking advantage of. Often time, that first candle is the biggest mover and I'm willing to risk 20-30% loss if it does reverse, which does happen especially on lower timeframes.

The dotted line is simply your stop loss. If price action crosses it and it CLOSES, and it HAS TO CLOSE, no exceptions, then you exit the position. Wait for a better entry.
If you use this indicator on the 15m chart, you are going to see that this rarely happens. The reason it is so effective is because you are finding the top or bottom in the last 20 candles and this gives you a good entry on reversals.

If you do use it on lower timeframes, say 1m to 5m (I even recommend it on 10m), then you need to set your bars to be at least 30 where you don't get as many poor entry signals.

Please recommend any feedback you have. I think this indicator is priceless but I'm biased.

One thing I will say is if the candle is an outside bar candle, it means the market is undecided and I would wait for a better entry. There are plenty of markets out there.

@halcyonguy and I have to work on designing a scanner and maybe cleaning the code up. But man this thing is kiwhe

Hey, so this indicator is meant to be as simple as possible.

The solid line is your entry once the candle crosses it and closes. I often take positions prior to the candle close because that solid line is the support/resistance zone that you're taking advantage of. Often time, that first candle is the biggest mover and I'm willing to risk 20-30% loss if it does reverse, which does happen especially on lower timeframes.

The dotted line is simply your stop loss. If price action crosses it and it CLOSES, and it HAS TO CLOSE, no exceptions, then you exit the position. Wait for a better entry.
If you use this indicator on the 15m chart, you are going to see that this rarely happens. The reason it is so effective is because you are finding the top or bottom in the last 20 candles and this gives you a good entry on reversals.

If you do use it on lower timeframes, say 1m to 5m (I even recommend it on 10m), then you need to set your bars to be at least 30 where you don't get as many poor entry signals.

Please recommend any feedback you have. I think this indicator is priceless but I'm biased.

One thing I will say is if the candle is an outside bar candle, it means the market is undecided and I would wait for a better entry. There are plenty of markets out there.

@halcyonguy and I have to work on designing a scanner and maybe cleaning the code up. But man this thing is killer.

when you said outside candle.. it's meaning the two 65 min candle combine right?

 

[bcab]

This is best used with extended hours off?

 

[Intrinsic Knowledge]

Got it, I have never used TTM squeeze, need to learn on how to use it.

https://imgur.com/a/xFswMiX

You would enter in the circle? or candle right of the circle while it is crossing the line?
Secondly, lets say you enter a position and close it. Do you wait for new lines to be formed for new postion?
(Sorry, I might be asking basic questions but I really want to learn and use this)

Hi bro, let me share my understanding for this strategy. This strategy trades on reversal based on the highest and lowest points within 20 bars.

1) The dotted green line is the lowest price and also the stop loss (when buy call). The signal(buy call) will trigger (on the NEXT candle) when the candle CLOSE above the solid green line. In addition, the signal is based on HH.
2) The dotted red line is the highest price and also the stop loss (when buy put). The signal(buy put) will trigger (on the NEXT candle) when the candle CLOSE above the solid red line. In addition, the signal is based on LL.
3) As always, good to trade with other indicator to increase the probability and confluence.

Please trade safe! Cheers

 

[OGOptionSlayer]

This is best used with extended hours off?

No, this works well with extended hours but you need to realize there is lower volume. I would recommend to use it with extended hours as the setup depends on the LATEST price action not one given at close yesterday.

Markets move greatly overnight and if you are taking puts at levels where yesterday's close told you to, you will get burned.

 

[OGOptionSlayer]

when you said outside candle.. it's meaning the two 65 min candle combine right?

No, an outside bar can occur on any timeframe. It's just a candle that has fully engulfed the previous one with a higher high and lower low. This means the market direction is undecided, and therefore, you need to wait to see who wins between the bulls and bears.

An inside bar is where the candle does not have a HH or LL from the previous candle, also indecisiveness and sometimes it contains at least a small squeeze building up momentum for a push in a reversal or trend continuation.

 

[OGOptionSlayer]

Hi bro, let me share my understanding for this strategy. This strategy trades on reversal based on the highest and lowest points within 20 bars.

1) The dotted green line is the lowest price and also the stop loss (when buy call). The signal(buy call) will trigger (on the NEXT candle) when the candle CLOSE above the solid green line. In addition, the signal is based on HH.
2) The dotted red line is the highest price and also the stop loss (when buy put). The signal(buy put) will trigger (on the NEXT candle) when the candle CLOSE above the solid red line. In addition, the signal is based on LL.
3) As always, good to trade with other indicator to increase the probability and confluence.

Please trade safe! Cheers

This is precisely right. For me, I always have the 10 SMA and 50 SMA on my chart to understand what market we are in. 10 SMA above the 50 SMA = Bull Market (for my analysis) and vice versa. I use Squeeze Pro (or TTM Squeeze) to stay in trades where market makers typically shake everyone out. It does lead to lighter profits on many trades but they are still around 50% but it leaves me in trades like last Thursday where it went 1000% and $470 put contracts when to $4700 a piece.

It's also why I stress proper risk management and getting out when the stop loss is hit. Those trades are probably not going to materialize into big gains and at that point, save the capital for a better opportunity. It may reverse back but then you just get in the trade again. It's trial and error but you want to decrease those errors as much as feasibly possible so you can get max value when you are accurate.

 

[Khahuy12]

No, an outside bar can occur on any timeframe. It's just a candle that has fully engulfed the previous one with a higher high and lower low. This means the market direction is undecided, and therefore, you need to wait to see who wins between the bulls and bears.

An inside bar is where the candle does not have a HH or LL from the previous candle, also indecisiveness and sometimes it contains at least a small squeeze building up momentum for a push in a reversal or trend continuation.

like today opening?

 

[OGOptionSlayer]

like today opening?

Prime example being today's opening lol