Posted on Leave a comment

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 $159.99Add 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 $159.99Add to cart

 

Posted on 1 Comment

PreMarket Gap Scanners for ThinkOrSwim

premarket gap scanners for thinkorswim

PreMarket Gap Scanners for ThinkOrSwim

With the PreMarket Gap Scanners for ThinkOrSwim, you’ll be able to find and trade the best in-play stocks for the day before most traders even know what they are. Like to trade during the pre market hours? Easy. Want to trade in-play stocks in the first few minutes after the open? Check. Want to add gapping stocks to your watchlist to find continuation plays later in the afternoon. Done-and-done. This set of scans brings you the highest quality, highest volume, highest volatility stocks for the day before the market even opens.

What you get:

  • Custom-programmed premarket gap scanner that finds TRUE gaps. (This is defined as low of prior day > last premarket price, or high of prior day < last premarket price). The built in gap lists can’t do this! The built in lists only find small changes from the CLOSE of the prior day which don’t mean as much for gap trading!
  • Two (2) custom-programmed premarket gap scanners that automatically look for PRO gaps. These are gaps forming in the opposite direction from the previous day’s movement (i.e., a gap down coming from a previous green day, or a gap up coming from a previous red day).
  • Two (2) custom-programmed regular trading hours scanners that narrow the built in gap lists down to only the most high-quality gaps. This scanner takes the existing gap lists in ThinkOrSwim (that work only after the market has opened) and weeds out the garbage, narrowing the list down to only the best gaps that are likely to form great setups during the day.

Why you want it:

  • Avoid hours of analysis … get a custom list of quality gaps delivered to you every morning without any work!
  • Allows you to log in 15-20 minutes before the market opens, grab your watchlist, and then get back to important stuff like making your morning coffee!
  • Whether you trade with ThinkOrSwim or just use it for its free data, charting, and scanning capabilities, these add-on scanner scripts will make your life easier!
  • Buy it once and use if forever! I’m making my own scanners available to you without any subscriptions or memberships. This allows you to keep more of your monthly trading income for the things that matter in your life.

How to get it:

  • It’s simple! ThinkOrSwim has a great “sharing” feature that lets users send each other their custom layouts, scans, indicators, and so forth.
  • I’ll send you an email with special ThinkOrSwim sharing links that will automatically import the scans into your system.

 

$129.99 $89.99Add to cart

 

About Josiah

Hi guys, I’m Josiah, and I’m a trader/programmer from the Nashville, TN area. I recently finished up both a bachelor’s and a master’s degree in Computer Information Systems at a local university and have been self-employed since then, trading and developing projects with Ruby on Rails on the side. Since I was already familiar with a certain amount of programming, and had an active interest in trading and investing, learning ThinkScript — the scripting language for the ThinkOrSwim platform — made a lot of sense, and helped me develop a platform configuration that really streamlined my trading workflow.

About the ThinkScripts

These basically came about because I got so frustrated with the limited built-in capabilities in TOS, and standalone subscription services that charge $99+/month. So I decided to learn ThinkScript so I could develop indicators and scans for myself. I still use most of these thinkscripts every day while trading.

Questions?

Email me here or leave a comment below!

 

$129.99 $89.99Add to cart