Description
This is a set of Thinkscript add-ons for Think-Or-Swim that allow you trade multiple time frame stochastics setups with lower timeframe chart entries. So for instance, you might want to trade stochastic setups on a weekly chart, but make your entries on the daily chart. This study set will allow you to do that by helping you scan and find ideal setups, evaluate trend strength and direction with the custom columns, locate attractive entries with the indicator and paintbars study, and finally make the trade.
The Multiple Time Frame Stochastics Indicator – What It Does
- Display weekly or monthly stochastics on daily charts
- Display higher timeframe stochastics on intraday charts
- Paintbars study colors your price chart based on whether %K is above or below the %D
- Scan for stocks with stochastics crossing user-defined thresholds
- Identify trends in watchlists with custom color-coded columns (green for uptrend, red for downtrend)
- Find lower timeframe pullbacks within higher timeframe trends
How It Works
- The user specifies a time frame for the indicator, scanner, and watchlist columns (weekly by default)
- User specifies stochastics settings for %K, %D, slowing average length if any, average type, etc.
- All plot styles and colors for the chart studies are customizable
Why You Want It
- Objective entries and easy to use color-coded chart
- Allows you to trade higher time frame trends on lower time frame charts
- Easily scan and find multiple time frame stochastics setups to trade
- Identify small time frame pullbacks in larger time frame trends
- Highly customizable – choose any time frame, any stochastic settings, etc., (good defaults provided).
Screenshots
Video
What is The Stochastics Oscillator?
The Stochastics oscillator was developed by George C. Lane in the 1950s. It’s a momentum indicator showing the relative location of the close to the high-low range over a given number of periods. Lane has stated that the oscillator “doesn’t follow price, it doesn’t follow volume or anything like that. It follows the speed or the momentum of price. As a rule, the momentum changes direction before price.” Thus, the oscillator can be used to find bullish and bearish divergences prior to reversals. The Stochastic Oscillator is range bound so it can also be useful for finding overbought and oversold conditions.
Calculation
Full %K = x-day Moving Average of [ (Current Close - Lowest Low) / (Highest High - Lowest Low) * 100 ] Full %D = x-day Moving Average of Full %K
Frequently Asked Questions
- Question: The hourly time frame stochastic turns to a dashed line on minute charts of equities when I turn extended trading hours off. Is this a bug?
- Answer: Sort of but not really. It’s actually just because of how Think Or Swim paints the first bar of the day for intraday, regular trading hours charts of equities specifically. On normal charts with extended hours turned on, the hourly bar goes from 9:00-10:00 a.m. On regular hours equities charts only, it goes from 9:30-10:30. This confuses the lower minute time frames because it thinks the hour should start at the hour, not at the 30 minute mark, so it shows a blank area on the indicator for that segment and turns the line into dashes. The values are still plotted and valid, but there are blanks. And this is specifically for intraday minute charts of stocks, with an hourly time frame stochastic, with extended hours turned off. Every other scenario should show up normally. It basically happens because TOS created an odd way of dealing with the first hour of the trading day on equities charts. Here’s an example of what you might see in that scenario:
Hourly Stochastic on 15 minute chart – with extended hours on left, without extended hours on right. Due to how TOS deals with the first bar on hourly charts, the line will turn dashed in this scenario on equities but should function normally on futures.
- Answer: Sort of but not really. It’s actually just because of how Think Or Swim paints the first bar of the day for intraday, regular trading hours charts of equities specifically. On normal charts with extended hours turned on, the hourly bar goes from 9:00-10:00 a.m. On regular hours equities charts only, it goes from 9:30-10:30. This confuses the lower minute time frames because it thinks the hour should start at the hour, not at the 30 minute mark, so it shows a blank area on the indicator for that segment and turns the line into dashes. The values are still plotted and valid, but there are blanks. And this is specifically for intraday minute charts of stocks, with an hourly time frame stochastic, with extended hours turned off. Every other scenario should show up normally. It basically happens because TOS created an odd way of dealing with the first hour of the trading day on equities charts. Here’s an example of what you might see in that scenario:
- Question: Do I get free updates?
- Answer: YES! And this is true of all the thinkscripts on our site. Updates, new versions, and improvements are always provided for free under your original order detail page when you log in to the My Account area of the site.
Questions?
We’re always happy to answer questions, and full email support is provided with every purchase. We’ll make sure you get up and running. If you have questions, email us here or leave a comment below!
