Thinkorswim indicators for thinkscript

People & Blogs

Introduction

Thinkorswim Indicators for Thinkscript

In the current market landscape, finding the best-selling brand often leads us to platforms like Weeble and Thinkorswim. Each platform serves a unique user base, particularly appealing to those trading specific stocks like the 2020 Ford F-150 from local Ford dealers. For this analysis, we're focusing on Thinkorswim and its customized indicators to improve trading strategies.

When diving into Thinkorswim, users often customize their setup using various studies and strategies. In my custom setup, I have included the Parabolic SAR, Elliott Oscillator (EWO), and other measurements derived from RSI studies. Despite my efforts to remove irrelevant data components such as floating P/L when not in a position, some elements like the floating P/L still appear and need manual adjustments.

Here is a breakdown of the customizations:

  1. Configuration: Using the Thinkorswim platform, I initially configured EWO with settings of 3, 5, and 35. This involved applying these settings and adjusting visible elements on the interface, such as the floating P/L. Further tweaks included removing the MACD indicator and ensuring the EWO is visible alongside other relevant indicators.

  2. Time Frames and Measurements: Setting the time frame to 15 minutes for one day, I fine-tuned the visualization to analyze price movements effectively. This also involved noting overbought and oversold levels, extracting these figures from the RSI study.

  3. Platform Comparison: Comparing Thinkorswim with an unnamed comparative platform revealed that Thinkorswim offers more customizability. Adjusting your indicators on Thinkorswim is straightforward, allowing traders to react to market movements accurately. This proprietary customization is instrumental for spotting buying opportunities during specific intervals, such as the low pocket on the 12th.

  4. Buy and Sell Opportunities: Visual analysis of market dips and peaks using these indicators can highlight optimal buy or sell points. For instance, on certain dates, we observe the price dipping below the moving average, presenting perfect buying opportunities that later result in significant gains.

  5. Schwab Integration: The transition of TD Ameritrade into Charles Schwab has opened doors to explore the Street Smart Edge platform. This will further enhance trading strategies with innovative tools and studies.

  6. Super Trend Study: A Thinkscript-based super trend study clarifies high and low points, guiding traders to make informed decisions. This script highlights the buy (low) and sell (high) points, which is crucial for successful swing trading.

  7. Emotional Strategy: Changing the visual indicators' colors from a traditional red-to-green to a green-to-red transformation can assist in mitigating trader psychology biases, thereby improving trading decisions based on empirical data rather than emotional responses.

In conclusion, Thinkorswim provides a robust platform for customizing trading strategies using advanced indicators and scripts. As we venture into Charles Schwab’s ecosystem, we expect even more refined tools to complement our trading experiences.

Keywords

  • Thinkorswim
  • Parabolic SAR
  • Elliott Oscillator (EWO)
  • RSI Study
  • Super Trend
  • Thinkscript
  • TD Ameritrade
  • Charles Schwab
  • Street Smart Edge

FAQ

Q: What are the primary indicators used in the custom Thinkorswim setup?

A: The primary indicators include Parabolic SAR, Elliott Oscillator (EWO), and measurements derived from RSI studies.

Q: How does Thinkorswim compare to other trading platforms?

A: Thinkorswim offers a higher level of customizability for its indicators, allowing more granular control and better reaction to market movements than some other platforms.

Q: What is the significance of changing red-to-green and green-to-red in visual indicators?

A: Changing the visual indicators' colors helps mitigate psychological biases, allowing traders to make more rational decisions based on data rather than emotional responses.

Q: What impact does the integration of TD Ameritrade into Charles Schwab have?

A: The integration allows traders to explore additional advanced tools and studies on platforms like Street Smart Edge, enhancing overall trading strategies.

Q: Can Thinkorswim scripts indicate exact buy and sell points?

A: Yes, using a Thinkscript-based super trend study, scripts can indicate optimal buy (low) and sell (high) points, aiding in successful swing trading.