Upside Reversal Chart & Scan For ThinkOrSwim

[Jeff1228]

Upside Reversal Chart & Scan For ThinkOrSwim

declare upper;

input range1 = 10;
input range2 = 30;

def SMA50 = SimpleMovingAvg(close, 50);
def EMA10 = MovAvgExponential(close, 10);
def EMA20 = MovAvgExponential(close, 20);

def Vol10 = SimpleMovingAvg(volume,10);

def pct = round((close - close[1]) / close[1] * 100, 2);

def lo = lowest(low,range1);
def hi = highest(high,range2);

def URS_calc = close >= hi * 0.75
and lo <= hi * 0.95
and high < hi * 0.98
and close > close[1]
and close > open
#and volume > Vol10[1]
and ((volume > Vol10[1] and volume > volume[1] * 0.8) or (volume > volume[1] * 1.5))
and (EMA20 > SMA50 or EMA10 > SMA50)
and close > SMA50
and SMA50 > SMA50[1]
#and (low == lo or low[1] == lo)
and (low == lo or low[1] == lo or low[2] ==lo)
and (close[2] > close [1] or close[3] > close[2])
#and URS[1] is false
;

def URS =  URS_calc >0;
plot UpsideReversal = URS and !URS[1];
#UpsideReversal.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_down);
#UpsideReversal.SetDefaultColor(GetColor(3));
#UpsideReversal.SetLineWeight(1);
UpsideReversal.hide();

AddChartBubble(UpsideReversal, low, “URS, Pct=" + pct, Color.PINK, no);

Scan filter UpsideReversal is true

 

[JeffryBatista]

@Jeff1228 love the name. All the Jeffs I know are cool. I had a question regarding the scan. Does this work better with a specific stock price or is it better to keep it generalized? And does this scanner work during the premarket?

 

[Jeff1228]

@Jeff1228 love the name. All the Jeffs I know are cool. I had a question regarding the scan. Does this work better with a specific stock price or is it better to keep it generalized? And does this scanner work during the premarket?

Thanks

From my observation, better to keep it generalized. It should work premarket but has a volume-related component, it won't return any results in premarket cuz the volume is usually thin.

 

[Musk335im3]

@Jeff1228

Hi Jeff. Thank you for this study and scanner. Saw this when you first tried fixing the scan bug with one of our moderators and I have been using it since then specially the scanner part. Made a ton of trades based off it already. Again, thank you very much.

I just want to ask you though if you (or somebody else who can) can post here the opposite of this study- Downside Reversal pattern. It somehow feels it's a good scan and study at one week aggregation. I know it should work, but this simpleton mind of mine was not capable enough to modify the coding. I tried many times already whenever I get the chance but failed.

Thanks in advanced.

 

[Jeff1228]

@Jeff1228

Hi Jeff. Thank you for this study and scanner. Saw this when you first tried fixing the scan bug with one of our moderators and I have been using it since then specially the scanner part. Made a ton of trades based off it already. Again, thank you very much.

I just want to ask you though if you (or somebody else who can) can post here the opposite of this study- Downside Reversal pattern. It somehow feels it's a good scan and study at one week aggregation. I know it should work, but this simpleton mind of mine was not capable enough to modify the coding. I tried many times already whenever I get the chance but failed.

Thanks in advanced.

Hi NeoCon, good to know you like this scanner.

I can work on the downside one, before I do that, could you please share some insights of your success using the upside one since you have done tons of trades. Also, for the downside one, do you have any specific market/names in your mind?

Thanks

 

[majidg]

Upside Reversal Chart & Scan For ThinkOrSwim

declare upper;

input range1 = 10;
input range2 = 30;

def SMA50 = SimpleMovingAvg(close, 50);
def EMA10 = MovAvgExponential(close, 10);
def EMA20 = MovAvgExponential(close, 20);

def Vol10 = SimpleMovingAvg(volume,10);

def pct = round((close - close[1]) / close[1] * 100, 2);

def lo = lowest(low,range1);
def hi = highest(high,range2);

def URS_calc = close >= hi * 0.75
and lo <= hi * 0.95
and high < hi * 0.98
and close > close[1]
and close > open
#and volume > Vol10[1]
and ((volume > Vol10[1] and volume > volume[1] * 0.8) or (volume > volume[1] * 1.5))
and (EMA20 > SMA50 or EMA10 > SMA50)
and close > SMA50
and SMA50 > SMA50[1]
#and (low == lo or low[1] == lo)
and (low == lo or low[1] == lo or low[2] ==lo)
and (close[2] > close [1] or close[3] > close[2])
#and URS[1] is false
;

def URS =  URS_calc >0;
plot UpsideReversal = URS and !URS[1];
#UpsideReversal.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_down);
#UpsideReversal.SetDefaultColor(GetColor(3));
#UpsideReversal.SetLineWeight(1);
UpsideReversal.hide();

AddChartBubble(UpsideReversal, low, “URS, Pct=" + pct, Color.PINK, no);

Scan filter UpsideReversal is true

Can you please help to provide the DRS_calc and DRS?

 

[Musk335im3]

Hi NeoCon, good to know you like this scanner.

I can work on the downside one, before I do that, could you please share some insights of your success using the upside one since you have done tons of trades. Also, for the downside one, do you have any specific market/names in your mind?

Thanks

I'll give you a better one: An explanation from someone who mentored me years ago + it's accompanying study and also recent entries I did on a ticker. Trade still ongoing.

Accompanying study:

https://usethinkscript.com/threads/eci-gaussian-indicator-for-thinkorswim.1160/

As for your last question, I try to avoid giving specifics per usual courtesy. Recent shorting we did thoughy are energy stocks specially ETFs. But not anymore as they are mostly consolidating.

[EDIT]
Sorry I had to repost the image properly per forum guidelines. Apologies to our great mod here.

The studies on this image are the following.
1. The aforementioned upside study and scan.
2. https://usethinkscript.com/threads/eci-gaussian-indicator-for-thinkorswim.1160/ - ECI Gaussian study
3. https://usethinkscript.com/threads/moving-average-crossovers-for-thinkorswim.229/ - Movinga average crossover using 8ema and 21ema.

The rest are our usual long term moving averages: 65ema (yellow) and 200sma (purple). The rest are just manual notations of the trade. Ticker is DQ. This is for the long side.

Apologies, mods.

 

[chaseimo]

I used the scanner and the indicator today for DLO. I closed out my position up 70%. Love to see this expanded upon to include a downside aswell.

 

[Jeff1228]

Thank you all for your kind replies.

As the author, I'm beyond happy that this indicator/scanner helped many people. However, one or a few successful trades don't make it a successful strategy. I used it, and harvested on $ZIM, $NET, $ASAN, but I also had many failures. So my question for you is, has anyone done a serious study on it? What's the CAGR and Sharpe/Sortino ratios look like? Or what are other takeaways from using it? Please share.

Plus, I am a firm believer that retail traders can be successful only if they trade along with the big whales. It's the institutional buying or selling that drives the price. So if someone can share some insights on institutional behaviors, maybe we can come up with better indicators to identify those opportunities for greater success.


Thank you all

 

[ConCac]

Upside Reversal Chart & Scan For ThinkOrSwim

declare upper;

input range1 = 10;
input range2 = 30;

def SMA50 = SimpleMovingAvg(close, 50);
def EMA10 = MovAvgExponential(close, 10);
def EMA20 = MovAvgExponential(close, 20);

def Vol10 = SimpleMovingAvg(volume,10);

def pct = round((close - close[1]) / close[1] * 100, 2);

def lo = lowest(low,range1);
def hi = highest(high,range2);

def URS_calc = close >= hi * 0.75
and lo <= hi * 0.95
and high < hi * 0.98
and close > close[1]
and close > open
#and volume > Vol10[1]
and ((volume > Vol10[1] and volume > volume[1] * 0.8) or (volume > volume[1] * 1.5))
and (EMA20 > SMA50 or EMA10 > SMA50)
and close > SMA50
and SMA50 > SMA50[1]
#and (low == lo or low[1] == lo)
and (low == lo or low[1] == lo or low[2] ==lo)
and (close[2] > close [1] or close[3] > close[2])
#and URS[1] is false
;

def URS =  URS_calc >0;
plot UpsideReversal = URS and !URS[1];
#UpsideReversal.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_down);
#UpsideReversal.SetDefaultColor(GetColor(3));
#UpsideReversal.SetLineWeight(1);
UpsideReversal.hide();

AddChartBubble(UpsideReversal, low, “URS, Pct=" + pct, Color.PINK, no);

Scan filter UpsideReversal is true

Thanks for the scan. I will give it a try tomorrow.

 

[Musk335im3]

Thank you all for your kind replies.

As the author, I'm beyond happy that this indicator/scanner helped many people. However, one or a few successful trades don't make it a successful strategy. I used it, and harvested on $ZIM, $NET, $ASAN, but I also had many failures. So my question for you is, has anyone done a serious study on it? What's the CAGR and Sharpe/Sortino ratios look like? Or what are other takeaways from using it? Please share.

Plus, I am a firm believer that retail traders can be successful only if they trade along with the big whales. It's the institutional buying or selling that drives the price. So if someone can share some insights on institutional behaviors, maybe we can come up with better indicators to identify those opportunities for greater success.


Thank you all

You actually made me chuckle/ smile a bit cause it made me remember the futures and forex guys of the company I used to worked with (six years as equities trader for some investment fund) cause those terms (and some more) is what we hear whenever their floors do their wednesday meetings. Our risk manager on the other hand hammered us in only two things: risk reward multiples and positioning sizing. I think it was Stan Weinstein who said trading/TA is more of an art than a science. Anyway, I digress.

The Upside reversion tick pattern (URS), in and by itself, is nothing special. I see it almost everyday. What makes it particularly unique is in a HIGHLY trending environment, it shows a possible good entry and more importantly it gives a risk definition, a quite rare feature to a single tick. Why? It's perhaps best explained by IBD and some good youtuber.

IBD: Upside Reversals Reveal Big Clues

The Upside Reversal Stock Setup

I should also better explain my ongoing trade on $DQ as shown in the image above, particularly the entries. My initial position was entered pretty early (forming wall of a shallow cup). I was not sure back then if it's just a random versus accumulative move by the ticker, but seeing some chinese and solar stocks were moving, hence I made pilot position. The ticker moved up substantially, consolidate a bit but went down significantly which was not a good pattern for me. However, when seeing that a URS started to form, my trading conviction just went up significantly and made the position a full size. It even gave me a very early entry point intraday as it was clear on price-volume action, it will end up as URS. The risk is defined by what both videos explain + I have a cushion via the pilot entry.

So per my use your tick coding and scan doesn't need any serious study to validate its use. It doesn't need one. Where it really shines is when a technician trader looks unto hundreds of charts every single day. The bubble just really makes it easy to catch in a quick look and the scan makes a trigger on my substantially sized watchlist + positions (albeit delayed due to TOS's one scan/ 5 minute limit.)

And if I may, I'm posting below a version 2 of your coding (and also the Dowside version) which was based on my feeble attempt on coding the IBD definition. I'm not sure if it was properly done right, but it definitely adds more triggers. I did not post them here at the outset as I know the coding is poor but they've been working for my purpose in a way.

# Upside reversion pattern per IBD

declare upper;

## input range1 = 10;
## input range2 = 30;

def EMA65 = MovAvgExponential(close, 65);
def EMA8 = MovAvgExponential(close, 8);
def EMA21 = MovAvgExponential(close, 21);
def Vol5 = SimpleMovingAvg(volume, 5);


def pct = Round((close - close[1]) / close[1] * 100, 1);

# def lo = lowest(low,range1);
## def lo = lowest(low);

#def hi = highest(high,range2);
## def hi = highest(high);

## def URS_calc = close >= hi * 0.75
def URS_calc = close >= high * 0.60
## and lo <= hi * 0.95
## and high < hi * 0.98
and close > close[1]
and close > open

#and volume > Vol10[1]
## (orig) and ((volume > Vol10[1] and volume > volume[1] * 0.8) or (volume > volume[1] * 1.5))
# (my mod)
and ((volume > Vol5[1]) or (volume > volume[1]))
and (EMA21 > EMA65 or EMA8 >  EMA65)
and close >  EMA65
and  EMA65 > EMA65[1]
#and (low == lo or low[1] == lo)
and (low < low[1])
and (low < EMA8 or low < EMA21 or low < EMA65)
and (close[2] > close [1] or close[3] > close[2])
#and URS[1] is false
;

def URS =  URS_calc > 0;
plot UpsideReversal = URS and !URS[1];
#UpsideReversal.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_down);
#UpsideReversal.SetDefaultColor(GetColor(3));
#UpsideReversal.SetLineWeight(1);
UpsideReversal.Hide();

AddChartBubble (UpsideReversal, low - (low * 0.02), “URS2: " + pct + “ %" , Color.PINK, no);

# https://usethinkscript.com/threads/upside-reversal-scanner-is-not-working.8640/#post-80250

The Downside reversion pattern per IBD

# Downside reversion pattern per IBD; beta version

declare upper;

## input range1 = 10;
## input range2 = 30;

def EMA65 = MovAvgExponential(close, 65);
def EMA8 = MovAvgExponential(close, 8);
def EMA21 = MovAvgExponential(close, 21);
def Vol5 = SimpleMovingAvg(volume, 5);


def pct = Round((close - close[1]) / close[1] * 100, 1);

# def lo = lowest(low,range1);
## def lo = lowest(low);

#def hi = highest(high,range2);
## def hi = highest(high);

## def URS_calc = close >= hi * 0.75
def PRS_calc = close >= high * 0.40
## and lo <= hi * 0.95
## and high < hi * 0.98
and close < close[1]
and close < open

#and volume > Vol10[1]
## (orig) and ((volume > Vol10[1] and volume > volume[1] * 0.8) or (volume > volume[1] * 1.5))
# (my mod)
and ((volume > Vol5[1]) or (volume > volume[1]))
and (EMA21 > EMA65 or EMA8 >  EMA65)
and close >  EMA65
and  EMA65 > EMA65[1]
#and (low == lo or low[1] == lo)
and (low > low[1])
and (low > EMA8 or low > EMA21 or low > EMA65)
and (close[2] > close [1] or close[3] > close[2])
#and URS[1] is false
;

def PRS =  PRS_calc > 0;
plot DownsideReversal = PRS and !PRS[1];
#UpsideReversal.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_down);
#UpsideReversal.SetDefaultColor(GetColor(3));
#UpsideReversal.SetLineWeight(1);
DownsideReversal.Hide();

AddChartBubble (DownsideReversal, High + (high * 0.05), “PRS2: " + pct + “ %" , Color.PINK, no);

# https://usethinkscript.com/threads/upside-reversal-scanner-is-not-working.8640/#post-80250