In this video Josiah introduces a simple method for day trading with Equivolume on highly liquid stocks like $MU. Specifically Josiah focuses on price and volume analysis on the 2 minute intraday timeframe. As far as tools and indicators, Josiah uses a basic 10 period Exponential Moving Average (EMA) as a trend indicator, along with the Z-Distance from VWAP indicator and Time Based Relative Shares Per Trade on Richard Arms’ Equivolume style charts. The combination of Equivolume and relative shares per trade adds an extra dimension of volume analysis and allows traders to see the relative commitment of large institutional traders at different times throughout the day.
First things first: I’ve been lazy lately when it comes to the site, but mostly because I have an extreme one track mind and my focus lately has been on my own trading instead of maintaining the site. The good news is that over the past week I had a chance to get into gear and clean up some things around here.
I also finally got around to posting the new thinkorswim earnings tool I’ve been working on for anyone that’s interested in that. It comes with 2 columns that show the days until earnings, and the actual date of earnings, and then 2 indicators that show labels with your current charted stock’s earnings date and days until earnings, and highlight the chart’s background when you’re approaching the earnings release date. Here’s a quick example:
Secondly, I’ve posted some new thinkorswim tutorial videos on the Youtube channel and plan to try to post on there fairly often, so if you’re not subscribed go check out the Youtube channel. While you’re at it, I also have a Twitter, Facebook, and Google Plus page where I sometimes post coupon codes, trades, and product announcements and updates.
One other improvement I’ve been making around here is that I’ve been trying to incorporate my own trade journal into the site in case it can be of any help to any struggling traders out there. Trading is a tough business, and cutting losses is the primary job description, so sometimes my trading journal doesn’t look pretty. Trading is a statistical game where over a large sample of trades, if your system works, you end up with more funds than you started with. Not every trade will work — in fact most won’t, generally — which is why you have to trade with a good risk/reward ratio and a solid trade management plan. I make no claims to trading perfection, and that is why I’m sharing my trading journal … to keep myself honest and transparent, and to show traders that you don’t have to be right all the time to make money, you just have to work an edge consistently. So with that in mind, here are my latest trades, and they will also show up along the sidebar on the blog section of the website…
Relative Volume Gradient Paintbars for Thinkorswim [VIDEO]
Relative Volume Gradient Paintbars Study for Thinkorswim
Today I’m releasing an overhaul of the Relative Volume indicator for Thinkorswim that I’ve been working on for awhile. This is one of my favorite thinkscript studies and I’ve been experimenting with it in my own trading for awhile, so I wanted to go ahead and get the update released on the site and see if it can add some value for my fellow traders.
Like all of our upgrades, they’re completely free to prior purchasers, just go to the My Account > Orders > View Order Details area of the site and the new links should be posted there for you to install.
- Relative Volume Gradient Paintbars to highlight the highest relative volume bars!
- Custom colors
- 4 custom coloration thresholds
- Different color scheme for up bars vs. down bars
- MA-based relative volume for tick charts, also with gradient paintbars!
- Combined tick volume / trade volume in the same indicator, just switch the mode in settings. Simply add 2 instances if you want both relative tick count & share count on the same chart!
- Combined long term studies into 1 study with custom period reset (12 for monthly charts, 52 for weekly charts, 252 for daily charts).
- Added a TIME BASED relative volume QUOTE COLUMN so you can see when a stock in your watchlist has surging volume on whatever INTRADAY timeframe you want (5 minute, hourly, etc).
- Added a MA BASED relative volume QUOTE COLUMN so you can see when a stock in your watchlist has surging volume on ANY timeframe you want (hourly, daily, etc).
- High volume bars now immediately pop out visually on your chart without having to look down at the histogram.
- You can even hide the histogram altogether and just use the paintbars function to gauge volume and save screen space.
- This release really simplifies down the number of scripts and makes each more powerful and customizable.
- MA-based relative volume indicator can be used on tick charts, intraday minute charts, or daily and higher charts.
- Using the MA-based relative volume on tick charts lets you see an additional dimension of volume on the same graph (tick count bars combined with share count highlighting really adds additional depth of information).
I’m finding the volume gradient to be a real value add, and especially on the tick charts: