MACD Indicator On WatchList! ThinkorSwim

[Music] hey guys welcome back this is joe with doji trading and today we are going to go ahead and continue in on our mini series on how to put an indicator from a chart onto a watch list so that your trading strategy can be optimized so i know a lot of people are looking forward to this and i feel like this is going to require some time to kind of go over so bear with me as we venture in on this and hone in all the important details to ensure that you get out of this what you feel is most viable to your trading setup so some of the things that we're going to go ahead and go over today is pretty much how to get the macd to trigger and show us a visual cue on our watch list when it either takes on a cross something like this when it crosses you know above the zero line or when it crosses below the zero line and to give you a little example of what that looks like here is the watch list that i currently use and how we are going to be able to visualize that in the end so right here we can see that we have bearish acceleration bearish deceleration bullish acceleration uh bullish deceleration a crossover in the overbought section and across already oversold so all that means that if i click on any of these we should see just that so we'll go ahead and use ms as an example let's click on that i'm going to put this right over here and as we can see had a cross take place within the last three days because that's where i set the parameters and obviously you can change that to your liking but that's completely up to you and how you choose to do so so we're gonna go ahead and look at cat same thing there was a cross within the last three days right over here let's go ahead and look at a bullish deceleration simply means that it's above the zero line it's already crossed and it's making a let's go and check on disney and that's exactly what's taking place as you can see right here just that already has a cross and it's already beginning to make its descent doesn't mean that you know it's going to fall off the charts all it simply means is that it's just losing some steam so i mean everybody uses the macd differently so however you choose to do so um however you choose to employ it with your trading strategy that's that's up to you completely first things first how do you want to get this started is by simply adding a custom script to your watch list so first we need to have a watch list already up and what we need to do is come right over here to the cog wheel go ahead and click on that click on customize and what you're going to do is go ahead and type in custom right here in this corner and what's going to do is bring up all your custom scripts go ahead and click on a blank one click on add items it'll go ahead and transfer the custom script right over here go ahead and click ok and what should happen is a pop-up should become visible that looks something like this now what we're going to do is go ahead and delete whatever script i already have in there by clicking the delete button coming over here to the thinker script editor and click on that now this code this code is actually from thinkorswim it is the macd code that they have inside of it if you want to go ahead and take a look at it what we can do is simply add the macd to your study click on the edit studies right here come on down to the macd right click it view source and what we're actually going to do is only take up to the zero line um that's all we're actually going to grab okay so we're going to go ahead and grab this um except for the declare lower so we're gonna grab all this right here copy it cancel cancel come right back over here right click on the column itself edit formula and now again go back to the same thing come over here to think script editor and let's go ahead and paste it so now we have now we have um the macd script from thinkorswim so we don't have to do all that ourselves but what we do have to do is change the inputs to define def let's go ahead and do that now just to save you guys i'm typing all right plot value yeah we'll go ahead and keep that and then we'll plot the average we'll go ahead and keep that plot the difference we can go ahead and do that and we'll just go ahead and define the zero line even though it's down here at the bottom i want to keep everything kind of in the same area so i'll go ahead and change that all right so now we have the general script for the macd and what we're going to go ahead and do is write the conditions and parameters that will help visualize the triggers on our watch list so what we're going to do first is go ahead and add a label and do we always want it to show yes and what we're gonna go ahead and do is go over um the conditions so basically the value is the blue line that you see here is the blue line they see here on the macd and this tanner line or the lighter line is the average itself so we'll use those two conditions and obviously the zero lines the purple line so we'll use that to kind of determine how we're going to view this so first thing we're going to do is if value we're going to look for the over bot conditions if the value is greater than or equal to the zero line and we need the average which is the lighter line to be greater than or equal to the zero line and value crosses below the average within three bars then we want cross overbought so i'm gonna go ahead and expand that so you can see a little bit better so basically what i'm saying is is the blue line over the zero line yes is the lighter line above the zero line yes did they cross over not at this point but if they did cross over within three days i want a signal to go ahead and say you know that it crossed over and you know that it's overbought that's that's the way i want to look at it you can obviously set it up for however you like that's just the method that i'm going to go ahead and use so let's go ahead and set the oversold conditions so we want to see if the value is less than or equal to the zero line and the average is less than or equal to the zero line and the value crosses above the average within three bars then we want to go ahead and see cross oversold okay and then what i'm going to go ahead and do is just close this out now just you can kind of get an idea i'm gonna go ahead and type else and then right here little dash end it and that ends the script okay so let's just go and take a look at that real fast hit apply hit okay and here we can see that it is clearly showing the oversold and it doesn't look there's any overboughts on this list so we know that this is in fact working this right here is obviously scanning for the macd oversold conditions so this is why it's actually showing up like this at the moment uh we'll get into creating a scan here in a little bit so crosses overbought so we know that it's working i just went ahead and loaded up a direction watch list just for the sake of testing so that's done we know it's working let's go ahead and continue on let's go ahead and start adding in these other conditions so we can kind of see everything at the same time so go ahead and click on the column click on the edit formula and what we're going to do is go ahead and say we're actually just going to keep this else and then we're going to elsif and now we're going to go ahead and write the next condition if value is greater than or equal to zero line and average is greater than or equal to zero line and value is greater than average then we want bullish acceleration okay so all this is pretty much saying is is the blue line above the zero line yes which it is right here and is the lighter line above it is and basically it's just showing momentum or upward trend um so we can just see some bullish acceleration there and simply you know put as is now you can obviously add this if you want you can take it away that's up to you i'm giving you the keys um to make your to help your trading style so we'll we'll go over all of them just that you know it's fully covered in this video all right so now let's go ahead and add the next one value we want to see if it's above the zero line we always got to test that out and the average is above the zero line and the value is less than the average then we want bullish deceleration okay so that's how we're gonna do that that all that one's basically saying is are they both above and are they both above the zero line and do we see you know a visible downward trend um or basically the blue line is beneath the lighter line that's all that's basically implying now we're gonna go ahead and go to the bearish elsif now we want to make sure the value is less than or equal to the zero line and the average is less than or equal to the zero line and the value is less than average then we want to see the bearish acceleration okay all this one's basically implying is beneath the zero line right here blue line is beneath the average line or lighter line just letting us know that there's some momentum in the downward trend i mean obviously we still have dissent from you know earlier it's just a confirmation that it's continuing um and i really should say it's a confirmation it's just acknowledging that we're still trending in that direction because obviously a train can change at any time okay so let's go ahead and continue on so that's the bearish acceleration we'll go ahead and say else if the value is less than or equal to the zero line and average is less than or equal to the zero line and value is greater than average then we want bearish deceleration okay and then after that it's pretty much the rest of the code is already written and all that means is we have the we have the incline from the bearish side you know basically making its way back to the zero line so this can be this can be interpreted however you want so i'm not going to go into that kind of explanation because everybody's going to view this differently so we pretty much set up all the patterns possible for the macd and now they're all visibly available to you on your watch list let's go ahead and click apply and okay and that's exactly what transpired we have just that so on our test side we can clearly see that everything's lining up and we are getting exactly what we're looking for and everything seems to be working just fine yep we got a bearish acceleration that's what we've seen here in the channel okay well everything's looking good now what we're going to go ahead and do is add some color to this if you want to stop here just you know this is all you needed fantastic but if you want to add some color or change things up let's go ahead and jump right into that so we're going to come on down here and the next thing we're going to do is actually assign a background color now what's nice is that we already read the code so we're not going to have to do much but change colors so let's just go ahead and grab everything from here and copy it come on down here assign background color all right and then after that go ahead and just paste at the very bottom i'm just go ahead and add else and then color dot current and go ahead and close that out that's pretty much wraps up the code uh to finish it off but we're gonna have to add some colors because this obviously isn't gonna work there's no colors that'll trigger here so if it crosses the overbought if it crosses on the overbought what do you want it to what do you want to show um for me if it's overbought then i'm probably looking to short so i'll go ahead and color that dark red and let's say it's oversold what color do you want that's pretty much that it's coming down here looking for it to probably start to reverse its trend so i'll probably think green okay now for the bullish acceleration again these colors you can you can make whatever you want if you choose to use them you don't have to um but these are the colors that i came up with they are just rgb colors that you can get from the website or you know any any html generator so what i'm going to do is create color 78 189 and 118 that goes ahead and creates that color for me and we're going to go ahead and do the same for the rest of these if you want to go ahead and follow along or at this point in time you want to stop the video and get your own rgb colors go ahead and do so all right now we're gonna go ahead and go into the bearish acceleration and i want 243 117 and 77 just close that out and then let's come on down here to the bearish descent let's go ahead and add 194 70 and 30. all right so there we have it so the code is all done everything looks good let's go ahead and hit apply if you want to go ahead and change it uh the name of the script go ahead and do so right up here click ok and voila now you have a working indicator that can be applied to your watch list that reflects the macd's current position this this to me is extremely useful because i like to see trends so i mean i know you took a look at my watch list earlier this is my real watch list that i actually use um and this you know will in fact tell me if i'm looking at what's kind of taking place at that time so if i'm looking at microsoft i can see that it's in a bullish acceleration it's going good you know there might be some momentum there i also use all kinds of other informative indicators as well just because the more that kind of stack on top of each other the better but that's just that's just my personal trading style um if you're curious about any of these please let me know we can go over them you know this is the standard deviation this is a true range average true range uh this one is the stock stochastics cross full all kinds of different things and if you've stayed with us during the mini series you've probably already seen the stochastics in the rsi so you know adding those all in here they're just additional references to have this is the bollinger bands but anyways we're not into that again we're going right back i'm side tracking so let's go and jump right back into here and now let's continue on with one of the things i i find that most people find most value in and that's the scan option so if you want to scan for all the overbought or oversold you'll be able to do just that with the macd overbought or oversold scans so i can grab the code from the test so what we're going to do is go ahead and right click this click on edit formula and what we're going to go ahead and grab is everything from the top okay so we'll start with that one we'll start with the overbought we'll come over here to the scan now if you you know i don't know what you have in here so what i'm going to do is just go ahead and reset this all right and we're just going to keep the volume one the other two we can go ahead and delete and the volume should go ahead and throw in some zeros in here i like to keep it at one million i don't know if that is i just pretty much toss it in there we'll take a look at it in just a second let's see all right so that happened to be a million come over here to add filter click on it click on study and then let's go ahead and come down to custom and same concept we're going to go ahead and delete so we don't need this code thanks script editor and go ahead and paste what we just copied from our actual script itself so now we pretty much have everything right on over here but what we want to do is change over a few other things so all the plots we're going to go ahead and change over to define so let's go ahead and do that now okay perfect okay so right here what we're gonna go ahead and do is check the conditions for the overbought so let's go ahead and do that by setting ob if value is greater than or equal to zero line same as last time and average is greater than or equal to zero line and value crosses below average within three bars then we want to if it's true we want it to add you know plot one else zero let's go ahead and finish that off all right so it looks good and then after that we just need to plot it so plot uh x equals over overbought so basically we just want to find out at this point in time is it overbought go ahead and click ok and scan so basically at this point in time anything that's overbought should pop up here on this list that meets this criteria and in fact it should be exact replica of what we saw over here and that's exactly what we have so if you want to go ahead and save this list or if you want to add any other criterias let's say you want to add you know a price to this change the ask price and put you know 5 bucks 10 bucks whatever it is that you're searching for so go ahead and put five scan so now we have a minimum of five dollars you can change the maximum whatever it is you can set your conditions here that you'd like and when you're done right over here by this little flame icon sizzle index go ahead and click on the show scan and go ahead and save it you go ahead and save that save it as whatever you like and once that once that's been completed you can come over to your watch list or you can add a watch list by clicking this little plus icon down here click on watch list and it'll go ahead and add it for you and once that's done you're going to go ahead and click right in this region here and scroll down to personal and go ahead and load it and once that's loaded then you'll have something that reflects what i have here currently it's dynamic so it'll continuously change as stocks or underlines meet those conditions and they will populate here for you to help assist you during your trading day so now that's the overbought let's go ahead and continue on with the oversold so we'll go ahead and pop open this custom come right back down here to the bottom where it says custom instead of overbought we're going to go with oversold so let's go ahead and change the ob to os and change this one to os and voila we're done all right yeah i'm really bad at making jokes so uh what we need to do is actually change these conditions because obviously they're not the same as overbought so is it less than or equal to the zero line for the value it's basically just changing everything around and the value crosses above the average within three bars then one else zero click okay okay go ahead and click scan and now this is pretty much going to tell us if we have any of that magic as well so we do to go ahead and save it come right back over here to the sizzle index to the right of it this is a little scan query menu click on it save it name it whatever you like go ahead and load it into your watch list and there you go you have a dynamic watch list that shows you all the crossovers for the macd within three days you can change it to your liking again i'm not here to go into detail with that i'm just here to give you the tools to prepare you for success for your trading trading journey so i definitely hope that answered most of your questions on the macd and how to implement it inside of thinkorswim and if there's anything else that you find that you would like added to it please let me know in the comments below um i really enjoyed this video i hope you guys find a lot of value in it and if you have any questions or comments again just let me know below or jump into the discord it's free you know i don't i don't believe in the charging thing this is educational purposes only and if you you know you have anything you want to run by me please go ahead and do so i look forward to hearing from every one of you and until next time this is joe adobe trading take care and trade safe

Channel: Doji Trading

Views: 1,026

Rating: 5 out of 5

Keywords:

Id: UatjqiZzsgE

Length: 23min 27sec (1407 seconds)

Published: Sat Jan 23 2021