How To Use ThinkorSwim | Build Your Own Thinkscript Algorithm

Education

Introduction

In this article, we will explore how to create your own Thinkscript algorithm on ThinkorSwim platform. Giovanni from Spy Options Trading demonstrates how to visually build a script to identify trading signals using the MACD indicator.

To start, right-click on the chart, then click on "Studies" and "Edit Studies" to locate the MACD indicator. Copy the code for the MACD indicator and create your own script with a unique name. By modifying the code and adding criteria, you can customize the script to generate buy or sell signals based on your strategy. Giovanni shows how to create up and down arrows on the chart when the fast line crosses over the slow line, above or below the zero line, respectively. You can apply this concept to other indicators like RSI as well.

Don't forget to understand the basics of scripting, such as defining plots and using conditional statements. With some knowledge of scripting, you can tailor the script to your specific trading preferences. Watch the full video tutorial for a step-by-step guide on building your own Thinkscript algorithm.

Keywords

  • ThinkorSwim
  • Thinkscript
  • MACD Indicator
  • Trading Signals
  • Customization
  • Technical Analysis

FAQ

  • Can I apply this script to other indicators besides MACD?
  • Do I need coding experience to create a Thinkscript algorithm?
  • How do I backtest my custom script on ThinkorSwim?
  • Is it possible to add multiple filters to the script for more precise signals?
  • What are the key points to remember when creating a custom Thinkscript on ThinkorSwim?