What Are The Best Indicators In ThinkOrSwim

[MerryDay]

Top Technical Indicators As Determined by Backtesting:
(FYI, no indicator can be used in isolation)

Rating	Trading System	Rating Points
1	Stochastics Momentum Index (SMI)	33302
2	Smoothed RSI	32106
3	Average True Range	31156
4	Relative Momentum Index (RMI)	30451
5	Stochastics	30187
6	SBV Flow	30173
7	Volatility adjusted MACD (V-MACD)	29424
8	Awesome Oscillator	28904
9	Relative Volatility Index (RVI)	28424
10	Ultimate Oscillator	27302

For more information as to the entry / exits used with these indicators:
https://www.marketvolume.com/technicalanalysis/rating.asp

1. Keep in mind that most oscillators are collinear, meaning most measure the same thing.
So the above list only shows that some oscillators have a SLIGHT edge over others.

2. Oscillators have issues, as seen here:
https://usethinkscript.com/threads/how-to-read-an-oscillator-in-thinkorswim.11497/
Oscillators have value when used CORRECTLY!
The oscillators on the list were tested with detailed specifications to maximize profitability.

So, it is very important to click on the link:
https://www.marketvolume.com/technicalanalysis/rating.asp
to see how to modify each oscillator to use it correctly!

For example
If you click on the link for the Stochastic indicator, it will explain that it must be refined by volume and have an added moving average to use as a signal line in order to be used profitably.

3. The list was found to be the best of the best oscillators when tested on a DAILY chart.
Oscillators look for the cyclical pattern of price movements, which are measured best on higher timeframes.
The use of oscillators on the lowest of timeframes can result in false signals and whipsaws, as the overall trend can be difficult to identify on these smaller aggregations.
It is importantly that they be used correctly. Read more:
https://usethinkscript.com/threads/what-are-the-best-indicators-in-thinkorswim.14498/#post-151586

Hope this helps.

 

[Ht070969]

What are the accurate alerts signals for buy & sell?

 

[MerryDay]

What are the accurate alerts signals for buy & sell?

Most of the above indicators are oscillators.
Here is how to analyze oscillators for potential entry and exit zones:
https://usethinkscript.com/threads/how-to-read-an-oscillator-in-thinkorswim.11497/#post-99858

 

[Schminga]

Most of the above indicators are oscillators.
Here is how to analyze oscillators for potential entry and exit zones:
https://usethinkscript.com/threads/how-to-read-an-oscillator-in-thinkorswim.11497/#post-99858

MerryDay:

Aloha from Maui!

Thank you for posting on Feb 11, 2023 "The Best Indicators In ThinkOrSwim ranked by Rating Points".

Can you bring this report current?

Thanks in advance for this request as I am certain not only I but all members will find curiously informative at a minimum!

Mahalo.

 

[useThinkScript]

MerryDay:

Aloha from Maui!

Thank you for posting on Feb 11, 2023 "The Best Indicators In ThinkOrSwim ranked by Rating Points".

Can you bring this report current?

Thanks in advance for this request as I am certain not only I but all members will find curiously informative at a minimum!

Mahalo.

It does not appear that the website has made any updates.
All the oscillators listed can be considered somewhat collinear.
As all oscillators are considered accurate and profitable when the trade trends.
read more:
https://usethinkscript.com/threads/...swim.11497/#:~:text=Pros: When a stock trends

 

[scott69]

I sent that list to a handful of professional traders and money managers that I know and none of them used any of those indicators, except the ATR, which they use in other, larger applications. Those indicators are just fancied-up versions of things that weren't broke to begin with, but people had to try to improve them or make them "prettier" with no noticeable improvements. I have to say that I have backtested 100s of indicators over the last 30 years, and most do not perform well. The best advice for amateur traders is to try to keep it simple. Learn to master the understanding of pure price action, with only a few tried and true indicators like the ADX, RSI, the true Wilder indicators that he invented in the 1970s.

I do agree that the pros use "different" sources of information not available to most small traders. If you are curious, try to find a report from any trader or manager from Goldman Sachs, BofA, Wells, etc. You will see what they are privy to on a daily basis. But it really has nothing to do with "trading" but on understanding the atmosphere the financial markets are, and positioning. These are the things that should be important to any trader, more so than what indicator to use.

The point I was trying to make is that with the advent of computers in trading, which made it easy to overly complicate the use of indicators, it is important for all traders, new or those experienced that are struggling, to keep the number of indicators to a minimum, keep the indicator simple, UNDERSTAND exactly what the indicator does, how it is used, and what can be expected, use combinations that are not duplicates in function, learn to understand pure price action (supply and demand) and employ various time frames for confirmation.

 

[useThinkScript]

Professional traders and money managers are not daytraders or scalpers.
They utilize a completely different toolbox to position their portfolios; along with the data available for Bloomberg Terminals and the like.

Daytraders and scalpers do not have access to those tools
For daytraders and scalpers, the oscillators listed in this thread are tried and true essential part of every successful strategy.
Research has not found any studies that are more profitable than oscillators.
When they are utilized correctly,

To use oscillators successfully, daytraders and scalpers need to be able to incorporate multi-chart analysis, recognize where support and resistance is, and always read volume and price action before entry.

VIP members can use this oscillator which incorporates dynamic support & resistance with the RSI oscillator along with identifying trends:
https://usethinkscript.com/threads/rsi-ha-trend.19862/

VIP members can add price action with this tool:
https://usethinkscript.com/threads/volatility-indicator.20595/

Yes, most profitable daytraders incorporate an oscillator into their sound basic strategy. Which includes assessing the overall market direction and momentum and correlation.

@scott69