ValueCharts Indicator for ThinkOrSwim

Description

About ValueCharts

ValueCharts for ThinkOrSwim is a powerful implementation of the original tool featured in Mark Helweg’s book Dynamic Trading Indicators. It is intended to help traders evaluate stocks, futures, and forex instruments in terms of relative value instead of raw price. Value Charts help traders determine value by distributing price movements into one of five valuation zones. The zones are labeled as follows:

1. Significantly Overvalued
2. Moderately Overvalued
3. Fair Value
4. Moderately Undervalued
5. Significantly Undervalued

These zones can give you an idea of whether a stock is currently overbought or oversold, or if it’s trading at a fair valuation. Because value is relative, ValueCharts plot price around what the book calls the floating axis. This is essentially a special moving average that the book describes. Your normal price chart in ThinkOrSwim plots the stock’s price relative to zero. But the ValueCharts indicator adjusts this to be the average valuation for a given look-back period. The default look-back period is 5 bars.

The indicator also makes use of a dynamic volatility unit. When market volatility changes, deviations from the axis, if stated in fixed price units, would change too, and it would become a noisy plot. However, by stating price deviations in terms of dynamically-adjusting volatility units, Value Charts can adapt to different market conditions.

Value Charts Indicator for ThinkOrSwim

I read Mark’s book awhile back and decided to give his indicator a go. Recently I decided to flesh the lower study out even more and include entry signals and signal alerts. The package also includes a custom ValueCharts scan for StockHacker, enabling you to find stocks with setups on whichever timeframe you choose to trade. And is also includes a watchlist or quote column to sort results. This indicator can be used on any time frame and you customize it in various ways:

Customizable ValueCharts Settings – Indicator

• Moving average type (simple, exponential, etc.)
• Moving average look-back period
• Cap extreme value to make it more readable (yes/no)
• Cap extremes at custom level (default 12)
• Show/hide entry signal arrows
• Show/hide alerts
• Show background colors (default green, yellow, red)
• Set the levels for significant highs/lows (default 8)
• Set the levels for moderate highs/lows (default 4)
• Custom arrow size
• All plot colors, styles, weights, etc.
• Alert sounds, behavior, visibility, message, etc.

ValueCharts Settings – StockHacker Scan

• Stock price min/max
• Average Daily Volume minimum and average type and length
• Which time frame to search for ValueCharts setups (defaults to Day)
  • Note: changes to this setting must be saved each time in order to update in the sidebar watchlist, if used

ValueCharts Settings – Watchlist Column

• Which time frame to search for ValueCharts setups (defaults to Day)
  • Note: this setting should be updated at the same time the scan timeframe is updated if you want to analyze the same timeframes in both

ValueCharts Indicator Screenshots

 

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!