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Key Reversal Time Lines Indicator

Custom time lines indicator

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.

Customizable Features:

  • 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

 

$99.99 $49.99Add to cart

 

Reversal time indicator - time lines every 20 minutes
Reversal time indicator example setup: custom time lines every 20 minutes.

Questions?

Email me here or leave a comment below!

 

$99.99 $49.99Add to cart

 

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Whole Numbers Indicator for ThinkOrSwim

AUD/USD Pscyhological Whole Figure Numbers

Whole Numbers Indicator for ThinkOrSwim

Whole Numbers indicator - properties window
Whole Numbers indicator – properties window

We’re traders, but we’re also human … and the human brain gravitates toward simplicity. That’s one of the reasons why in trading, there’s just something about whole numbers or round figures. Our brains just like seeing numbers like fifties, hundreds, tens, and thousands, better than more complex numbers. Because of that, more often than not, stock price trends always seem to change direction near whole numbers like these. I know several professional traders who check nearby whole numbers before taking any trade. They assess whether there is good room to target before the next round number, and determine if an entry should be delayed until a nearby round number is reached. And that is why I have created a whole numbers indicator for ThinkOrSwim.

I programmed this whole numbers indicator so you’ll be able to easily identify the areas where there’s a greater likelihood of short term or long term reversal. When price is approaching a whole figure, you’ll be able to see the area on the chart without guessing. Now you’ll never have to worry about forgetting to check for these nearby “psychological figures” before placing your trades, because you’ll be automatically reminded of them in advance.

Whole Numbers indicator - add to chart
Whole Numbers indicator – add to chart

Flexibility

One issue with an indicator like this is that it has to be able to adjust to the instrument you’re trading. Forex, for instance, operates on totally different whole numbers than stocks do, because in forex every round number is a fraction of 1. So I specifically made this indicator to work on multiple types of instruments so that the whole number lines spread out as the instrument’s price gets larger. Result: this indicator works for stocks, futures, penny stocks, and forex.

The color of each line, as well as individual line thickness and style (solid, dashed, dotted, etc.) are all completely customizable. And you can also turn on/off the price bubble for each line on the right side of the chart. In addition, you can specify in the properties whether you want the indicator to show single digit levels below $10, and .05 increment levels below $2, so you can remove clutter you don’t want.

How it Works

The numbers highlighted by default are as follows:

  • Counting by .05s from 0 – 2: (.05 .1 .15 .2 .25, etc. — these are good for forex and penny stocks)
  • Counting by 1s from 0 – 10
  • Counting by 10s from 0 – 300
  • Counting by 25s from 0 – 500
  • Counting by 50s from 0 – 1000

Hopefully you’ll find this as useful as I do. Please check out these screenshots of the whole numbers indicator and contact me if you have any questions!


$99.99 $79.99Add to cart

 

AUD/USD Psychological Whole Numbers indicator
AUD/USD Psychological Whole Numbers indicator


$99.99 $79.99Add to cart

 

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The Power of the Relative Volume Indicator for ThinkOrSwim

relative volume indicator for thinkorswim

Relative Volume Indicator for ThinkOrSwim

For many of you subscribe to the classical trading philosophies of legendary traders like Jesse Livermore and Richard Wyckoff, there is probably no need for me to further emphasize the importance of volume here. Over the years I’ve read many, many trading books, and after reading many of these classical traders’ books, pamphlets, and articles, I realized my current toolset for analyzing volume was insufficient. And that is what led to this relative volume indicator for thinkorswim.

Most trading websites tell you to watch for volume surges, and there are many ways of determining when a surge is happening. Some relative volume indicators simply check to see when volume is above its moving average. But these measures are highly inaccurate, especially at certain times of the day. Volume is always going to be higher at the open and the close, and these extremes skew the moving average for the rest of the day, making it basically useless.

What I really needed was a way to see what the average volume was for a given bar at a specific time of day, and then to compare the current volume to that bar’s average to see if there was anything unusual going on. So I set about trying to develop ways of automating my volume analysis as much as possible, and making it abundantly obvious whenever there was a trading anomaly in the works. And that journey led to this set of ThinkScript studies for ThinkOrSwim, which provide an easy, visual way for stock traders to quickly determine if a tradable event is occurring.

How it works:

Relative Volume Indicator Add to Chart
Relative Volume Indicator – Add to Chart
  • A given bar’s volume is averaged over a customizable look-back period (10 days by default).
  • The current bar’s volume is compared to its average volume and ranked in relation to that average.
  • If the current bar’s volume is below average, it will be dark gray; if it’s above average by certain thresholds it gets brighter, and turns blue at extremely high readings, drawing your immediate attention.

What you get:

Relative Volume Indicator Properties
Relative Volume Indicator Properties
  • A custom-programmed relative volume indicator that tells you if the current volume is below average, just average, above average, or truly extreme.
  • A custom-programmed relative trades indicator that shows you the relative number of trades that are happening — or, said another way, the relative speed at which the tape is scrolling — indicating the amount of interest there is at the current price level.
  • A special bonus indicator showing the average shares per trade for the current bar. When you see this number jump you know the big boys have joined the party!

Why you want it:

  • Find key turning points on the chart before the move is over. Identify where unusual buying or selling has begun to create a reversal and start building a position early.
  • See what the big boys are doing so you can follow in their wake and stay on the right side of the trade!
  • Never be fooled by the basic volume graph again. Your typical volume graph can lead you astray and trick you into thinking there is strong commitment behind a move when there really isn’t, or make you miss the moves that do have strong commitment behind them but are often impossible to find without the right tools!

 

$249.99 $129.99Add to cart

 

relative volume indicator for thinkorswim
Relative Volume Indicator for ThinkOrSwim. This 5 minute chart shows that relative / time-based volume, trades, and shares-per-trade can help pinpoint key events and turning points during the trading day.

Questions?

Email me here or leave a comment below!

 

$249.99 $129.99Add to cart