True Momentum Oscillator for ThinkorSwim

markos

markos

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MACD Divergences ; Lookback period 55
Fastlenth 12 Slowlenth 26 Signallenth 9 Smoother 2
@Chess68 Please start a new thread for this so that this doesn't get mixed and lost amid the TMO stuff. :)
Search MACD in the box above. There may be one of these done a while back.
Otherwise in the Tutorials Section, please look at Universe of Thinkscript.
It has boat loads of studies scattered throughout, you may find similar in there. Good luck.
 
markos

markos

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MACD Divergences ; Lookback period 55
Fastlenth 12 Slowlenth 26 Signallenth 9 Smoother 2
As has been stated before, this is the standard MACD with a lookback and smoother. It's what coders call "lipstick", nothing special at all. sorry for the tough love but it's just sexy looking, that is all, imo.
 
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Nick

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@markos thanks for sharing. My trading timeframe is Daily and I noticed that you have both the Week and Day TMO indicators merged and on top of RSI_lg. May i know how do you use all these 3 indicators to identify your setup? May i also know the purpose of combining both Weekly and Daily TMO indicators? Thanks
 
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horserider

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@Nick Look at the chart and think. What do you believe it is telling you? Understand what each line of the indicator is actually doing and I think you can answer your questions. How about you tell us what you think the purpose is and what the setup is and then others can give their opinions. More opinions, more possibilities of finding the answers.
 
markos

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@Nick Look at the chart and think. What do you believe it is telling you? Understand what each line of the indicator is actually doing and I think you can answer your questions. How about you tell us what you think the purpose is and what the setup is and then others can give their opinions. More opinions, more possibilities of finding the answers.
@horserider thanks for the answer. @Nick horserider is correct. Look at the code and chart and tell us what you think. We can steer you in the right direction if you get too far off. My pc is in repair so this is all I can do currently.
 
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Nick

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@horserider @markos Thanks guys for your encouragement. I have captured my observations in the chart attached. To be honest, i don't quite understand the codes but able to pick up some observations to my best ability.

What i would like to learn is the process how you interpret the chart

Any feedback are greatly appreciated.
 
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Nick

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@horserider @markos Thanks guys for your encouragement. I have captured my observations in the chart attached. To be honest, i don't quite understand the codes but able to pick up some observations to my best ability.

What i would like to learn is the process how you interpret the chart

Any feedback are greatly appreciated.
@markos do i need to change the period to 21, 5 3 ?
 
markos

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@horserider @markos Thanks guys for your encouragement. I have captured my observations in the chart attached. To be honest, i don't quite understand the codes but able to pick up some observations to my best ability.
What i would like to learn is the process how you interpret the chart
Any feedback are greatly appreciated.
@Nick I guess you are serious about this! great. :D(y)
It's past 10:30 pm where I am, I'll have to review the chart later.
No, for now keep The TMO D & Wk set at 14 not 21. That is how Mobius built them, he's the creator of it and has been writing scripts since ThinkorSwim opened their doors..
Also, I put a tutorial for RSI Laguerre in the Tutorial section. Please read that over. Until tomorrow, Markos
 
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horserider

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@Nick Nice observations. Now do you feel you know more about the indicators? I do not use any of these so Markos may have better insight on them.
Some depends on how aggressive you want to trade. Here is how I see your chart. At observation 1 price breaks below the moving average and the week and day TMO both red so looks like good sell signal if already in a trade or a buy puts signal. Between observation 1 and 3 white dashed line just hold put position as moving average is still slightly sloped down and week TMO is red. Ignore daily TMO humps. If you want to be aggressive you could sell put or buy a call at point of while line. Price has moved away from the moving average a good amount and at the end of a somewhat long down move so a reversal is more likely. So when daily TMO turned green you could make the trade. The conservative move would be wait for price to break the moving average , moving average is sloped up and week TMO becomes green. Then just ride it up with price above MA and week TMO green.
Of course hindsignt is 20/20. Not quite as easy as it is happening.
 
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Nick

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@Nick Nice observations. Now do you feel you know more about the indicators? I do not use any of these so Markos may have better insight on them.
Some depends on how aggressive you want to trade. Here is how I see your chart. At observation 1 price breaks below the moving average and the week and day TMO both red so looks like good sell signal if already in a trade or a buy puts signal. Between observation 1 and 3 white dashed line just hold put position as moving average is still slightly sloped down and week TMO is red. Ignore daily TMO humps. If you want to be aggressive you could sell put or buy a call at point of while line. Price has moved away from the moving average a good amount and at the end of a somewhat long down move so a reversal is more likely. So when daily TMO turned green you could make the trade. The conservative move would be wait for price to break the moving average , moving average is sloped up and week TMO becomes green. Then just ride it up with price above MA and week TMO green.
Of course hindsignt is 20/20. Not quite as easy as it is happening.
Thank You for your feedback. I just learned to trade options with by selling spreads, eg Bull Put Spread. Thus, my trading style is to enter when price pullback to 20D or 50D Moving average. What i am looking for is a lower indicator that can help me better evaluate the momentum for the next few candles. I will explore abit more on this setup and share my observations again.
 
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Nick

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@Nick I guess you are serious about this! great. :D(y)
It's past 10:30 pm where I am, I'll have to review the chart later.
No, for now keep The TMO D & Wk set at 14 not 21. That is how Mobius built them, he's the creator of it and has been writing scripts since ThinkorSwim opened their doors..
Also, I put a tutorial for RSI Laguerre in the Tutorial section. Please read that over. Until tomorrow, Markos
Thanks Markos for all your sharing..I really like the community here.
Yes..i am serious about this...Hahahha
 
markos

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@Nick did you review my rsi_lg tutorial? There is a reason why both studies are on the chart. Your selling option spreads? I'm buying atm spreads.
Please watch this short video: https://askslim.com/slim-ribbon/
Because I do everything on a little android screen, (pc is broke) this may take some time.
BBL, Markos
 
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Nick

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@Nick did you review my rsi_lg tutorial? There is a reason why both studies are on the chart. Your selling option spreads? I'm buying atm spreads.
Please watch this short video: https://askslim.com/slim-ribbon/
Because I do everything on a little android screen, (pc is broke) this may take some time.
BBL, Markos
@markos No rush markos...Yes i did review the tutorial but will watch it again.
Yes i am selling options, vertical spreads, mainly Bull Put Spread or Bear Call Spread with DTE about 2 wks to take advantage of the time decay. I have configured and shared the screener for pullback to moving average and it perform pretty decent on my list of uptrending stocks. So, with this TMO and RSI-Lg combo, i hope that it can help me to adjust my strikes accordingly.
 
markos

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@Nick Nice observations. Now do you feel you know more about the indicators? I do not use any of these so Markos may have better insight on them.
Some depends on how aggressive you want to trade. Here is how I see your chart. At observation 1 price breaks below the moving average and the week and day TMO both red so looks like good sell signal if already in a trade or a buy puts signal. Between observation 1 and 3 white dashed line just hold put position as moving average is still slightly sloped down and week TMO is red. Ignore daily TMO humps. If you want to be aggressive you could sell put or buy a call at point of while line. Price has moved away from the moving average a good amount and at the end of a somewhat long down move so a reversal is more likely. So when daily TMO turned green you could make the trade. The conservative move would be wait for price to break the moving average , moving average is sloped up and week TMO becomes green. Then just ride it up with price above MA and week TMO green.
Of course hindsignt is 20/20. Not quite as easy as it is happening.
@horserider you are too smart for your own good, as people my age say. :) You get a double(y)(y)
 
markos

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@Nick Compare the MSFT chart to ROKU, PAYC, AAL and MMM. Don't write up an analysis, just observe the Green-Red Polarity Changes on the TMO. Remember, the yellow FE in RSILg is not a signal to trade but moreso, not to trade. Keep observing. TTL
 
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Nick

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@Nick Compare the MSFT chart to ROKU, PAYC, AAL and MMM. Don't write up an analysis, just observe the Green-Red Polarity Changes on the TMO. Remember, the yellow FE in RSILg is not a signal to trade but moreso, not to trade. Keep observing. TTL
Thanks Markos..Greatly appreciate that guidance. I also realised that we can also scan when the TMO changes from Green-Red polarity so that we can start to watch for potential direction. Will update my observations.
 
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David45

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My longer term chart…

Shareable Code: https://tos.mx/bc1Hwy
Hello Markos,
Your chart layout looks incredible! You had replied to a previous question I had as to which indicators/oscillators might be the most useful to swing trade index ETFs long and short on the daily timeframe. Thank you! I'm just trying to catch the major trend moves up and down. With that said, if you were to pick RSI Laguerre or the True Momentum Oscillator, which would you pick? They appear to both be amazing indicators but I'm not sure which may be better for my intended purpose. I'm trying to make this as simple as possible.

There isn't really a tutorial on the TMO so I was hoping you could answer some questions using your chart as an example. Using the Aggregation set to (WEEK) but on a daily chart, is the idea to simply go long when it turns green and go short when it turns red? Or is there more to it than that? Same question but for the Aggregation set to (DAY) and also using a daily chart. For my purposes, would you suggest changing the settings to 21,5,3 for either the (WEEK) or (DAY) Aggregation?

I cannot thank you enough Markos for providing any insight into these questions. I am very grateful for your help!
 
markos

markos

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Hello Markos,
Your chart layout looks incredible! You had replied to a previous question I had as to which indicators/oscillators might be the most useful to swing trade index ETFs long and short on the daily timeframe. Thank you! I'm just trying to catch the major trend moves up and down. With that said, if you were to pick RSI Laguerre or the True Momentum Oscillator, which would you pick? They appear to both be amazing indicators but I'm not sure which may be better for my intended purpose. I'm trying to make this as simple as possible.

There isn't really a tutorial on the TMO so I was hoping you could answer some questions using your chart as an example. Using the Aggregation set to (WEEK) but on a daily chart, is the idea to simply go long when it turns green and go short when it turns red? Or is there more to it than that? Same question but for the Aggregation set to (DAY) and also using a daily chart. For my purposes, would you suggest changing the settings to 21,5,3 for either the (WEEK) or (DAY) Aggregation?

I cannot thank you enough Markos for providing any insight into these questions. I am very grateful for your help!
@David45 Please fill out your signature so all know how to help you. I don't understand how a person can swing trade on a daily chart; I invest for longer than a week at a time. Need to know the type of ETF's you are looking at.

I can tell you that I have never met a Day Trader that just looked at a chart after market close, only to put an order in to Buy in the morning. If that is the case, I would not want to enable what I see as a train wreck. Really! @BenTen please give your thoughts. I'll be back tonight or sometime this weekend. We cannot give investing advice, but we can steer you in an area that may suit you. Thanks, Markos
 
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BenTen

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@David45 Someone in the chat recently shared this so I'm dropping it here just in case it could be helpful to you and everyone else.

When @hurricane5 was asked about using the TMO indicator for trading:

TMO... i just use the standard settings. Don't get the fancy color wedges, but once the lines cross, it's a pretty good indicator of trend reversal. The SMA cross is what triggers the alert, and if TMO is at the top or bottom of the scale, I'm confident jumping in. If only TW had trailing stops, I'd be set...
 

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