Reversal Time Vertical Lines Indicator for ThinkOrSwim
This reversal time indicator for ThinkOrSwim could be very important to your trading. Many times we forget that there are multiple dimensions to the stock market — price, share volume, and tick/trade volume all play a role, but one dimension we often forget about is the dimension of time. In our stock charts, time is one of the two dimensions displayed … price is the vertical axis, and time is the horizontal axis. But we often seem to ignore it.
Time influences the movement of markets due to a wide variety of reasons. Tom Bulkowski’s statistical work has shown that intraday trend reversals tend to occur at 1 minute past each hour, 1 minute past each half hour, and 51 minutes past each hour (examples would be 9:01, 10:31, 11:51 respectively). Knowing these kinds of statistical tendencies is what having an edge in the market is all about. There are also exchange procedures that lead to price movements at certain times of the day — for instance, intraday margin calls usually happen between 11:00 a.m. – 1:30 p.m. Things like this show how time truly matters to price movement, yet is largely ignored.
It was with this in mind that I put together a highly-customizable ThinkScript indicator to highlight important reversal times throughout the day. It can be used to highlight a statistical reversal time you’re watching, to tell you at what time of the day you should change strategies, or even just remind you to take lunch or close out your afternoon positions. There are endless ways the time lines indicator can be used based on your own trading system.
- The ability to add custom text labels to each time line, or remove individual labels
- The ability to show/hide a particular reversal time (just place a zero in the time specification field to make it disappear)
- The ability to change the line color
- The ability to change the line style (solid, dashed, dotted, etc.) and thickness/weight
- The ability to place the lines on the lower studies (volume, etc.) as well as the main price chart, if desired
Email me here or leave a comment below!