Thinkorswim Scan MACD RSI Part Two

hi my name is Pete Hahn and thank you for watching this tutorial video be sure to visit www.disabilitydenials.com if I could convert the indicator to also show overbought conditions in addition they wanted to see if I could add an alert to the indicator well once they requested that I add an alert then quickly understood that they're using it on a live chart because the alert is of no use on a scan and you could only use the alert on a live chart or perhaps a watch list I still haven't tested to see if it will work on a watch list so anyhow that's how this video came to be that's how this indicator came to be what you're looking at on your screens I've got a weekly chart on the left a daily chart on the right the weekly chart the indicator is set to show overbought conditions and the daily chart on the right is set up to show oversold conditions if you want to plot both of them in the same chart simply add the indicator twice and set one to overbought and one to oversold okay so there's a lot of moving pieces as I said first let's get in and show you exactly what it looks like in a live chart so I'm going to bring up a live chart it's going to be a fifteen minute chart on the right side and I'm gonna bring up the S&P e-mini futures okay so I've got the on-demand feature turned on I hit the play button and remember this first video section is showing how the indicator operates when it's set to trigger an alert on a live bar okay this bar is about to close and the next bar is the one that generates the signal watch and see what happens as the bar closes you see we have a signal on the chart a bubble is plotted overbought we also have in the upper left a message center indicating that the indicator has displayed an alert so now we're going to jump forward a little bit to 11:50 for because I want you to see that the indication on a live bar can change as the live bar is continuing to update notice the clothes has now gone high enough that the MACD histogram has gone higher and the signal disappears and the bar changes from gray back to green back to gray and back to green as that clothes hovers around the point where the signal could be good or it could be bad so I want you to see now as we jump forward a little bit towards the end of this bar there we go we've got about 10 seconds to go before this bar closes and indeed it eventually closes with a valid signal however this bar could have easily closed without a valid signal so that is the hazard of using the indicator in a live bar situation you get an advanced notice but that notice can vanish now I've reset the charts and I'm going to update the study and I'll click the gear icon here and we'll scroll down in the parameters till we get to the section where we change the alert on parameter we're going to change it to closed bar so now it's going to require a signal to be locked in with the bar closed before it will trigger an alert so go ahead and hit play okay so this is the bar that is eventually going to generate the signal notice that it changes gray but there is no alert and there is no chart bubble indicating an oversold condition so let's forward this over to about 11:59 so that no I'm gonna do it to 1154 instead so here you can see the bar has change from gray back to green indicating that the signal is not locked in yet and it's sort of coming and going you know it's fading in and out we don't know whether this is going to be a valid signal until this bar closes so let's jump forward a little bit and see if we can get towards the end of this bar and watch how the indicator behaves under this setting okay we're down to the end of the bar I've got it playing at regular speed now and watch what happens so now we get a signal an alert is generated only when the signal is locked in and the bar has officially closed with a signal that is locked in okay so now you see the difference between those two settings very important that you understand that and how to apply it okay now that you've seen how the indicator performs on a live chart I want to get into the parameters the settings of the indicator I want to show you how it works there's a lot of moving pieces in this indicator and as I mentioned previously I want to make sure you understand these before I post the link for you to download this indicator from my Google Drive on the right-hand pane I'll select studies and click Edit studies and you can see the indicator is chart MACD RSI you click the gear icon and that opens up the parameters the first three parameters are the settings for the MACD and then you have the setting for the MACD average type if you scroll through these parameters now I've got the RSI length is in here these are all just standard values by the way I've got the RSI price RSI average type and then the overbought and oversold levels those levels will impact how the indicator plots I've got a look-back period and at sim police says if I've got the MACD to bar pivot how far back should the indicator look to find an overbought or oversold condition the default is set to for these last two will determine how the indicator plots we've got it oversold and overbought and we have alert on closed bar or a live bar and you saw that demonstrated in the video so you understand the impact of that value and how you can change that well press ok and ok now I told you that you can add two of these indicators to the same chart if you want to plot both the oversold and the overbought together so on this chart on the right hand I've got it set up to plot the oversold signals so we go to studies edit studies you can see that that indicator appears only once so I'll go ahead and add it from my list of user-defined studies and now I've got it in here twice so I'll hit the gear icon and then scroll down and make sure that it is set to overbought and then I can select whether I want it on a live bar or a closed bar since the other indicator is set to closed bar I'll go ahead and set this one likewise press ok apply and ok there's a little warning up here and you don't have to worry about that warning the warning is simply stating that I've got two different studies are trying to change the color of the signal bar and I've ensured that the indicator is written in a way that you're not going to get an overlap it's only going to have either the oversold or the overbought is going to change the color of the price well scroll to the left here and see if there are any overbought signals there we go there's one and there's another and if you look down at these lower studies that the MACD you've got the two bars you know you got a 2 bar pivot and you had the RSI and the overbought level and the same thing with this signal here you've got a 2 bar pivot on the MACD and you had the RSI in the overbought condition okay so that's all I wanted to show you on setting up the indicator and installing it on your charts if you want to see how to download this indicator and install it on your thinkorswim platform i'll link that video up above and that would be the display name of saved chart that was a video that I did several months ago and it will show you how to take an indicator install it on your thinkorswim platform next I will go ahead and post a link so that you can download this indicator from my Google Drive okay don't go anywhere yet because I've got another item to show you in addition to building this indicator into a price chart indicator I also have a scan version of this same indicator I've adapted the scan from the original video so that it can scan for either overbought or oversold conditions and I'm going to show that to you now we're gonna studies edit studies and from my user-defined studies I'll scroll down to where my scans are scan MACD RSI and it plots in the bottom I'll hit apply and ok and we can scroll through here till we find an indication you can see right now the indicator is set up to find overbought conditions ok so we'll scroll that back over to the right and we'll go to studies edit studies and now I'm going to click on the scroll icon and down at the bottom of these lines of code you'll see that there are two plots for the scan and you can only use one at a time so we'll uncomment this one we'll get an error message until we put a comment mark on the second one and then we'll hit apply and ok and it okay you can see that now we've flipped it around it's also showing the oversold conditions okay so this is an indicator that can be used in your custom scan it will work just like the other one that I showed you in the previous video which I will link to now because in that original video I showed you how to build a custom scan from it using the scan tool in the thinkorswim platform and so if you want to use this new indicator to do a scan for both oversold and overbought you can set it up so that you can run those scans and and get that done okay hope this was helpful if anybody is interested in the code and how the code was written and how you can modify it so that you can put your own custom indicators let's say you wanted to do one for stochastic or momentum index or a price channel or Bollinger Bands you name it if you guys are interested in learning how to work in the code and modify these things I would really be excited to hear from you and I would be really happy to do some videos on that I just want to make sure that you guys are interested I know a lot of people see code and they get headaches and they you know nosebleeds and you know yelling and screaming goes on I've experienced all that trust me I know so but if you guys are interested boy I'll show you how to do that and you'll be you'll be interested house how really simple it is really is pretty easy once you figure it out so anyhow hope this was helpful take care everyone thank you for watching this tutorial video be sure to visit w-w-w this video increases your knowledge and helps you become more efficient with this topic whether for home or work please support this channel by sharing these videos with your friends and colleagues thanks and take care

Channel: Hahn-Tech, LLC

Views: 15,457

Rating: 4.9735098 out of 5

Keywords: Thinkorswim Scan MACD RSI Part Two, Stocks, Options, Futures, Forex, Trading, Markets, MACD, RSI, Relative Strength Index, Thinkorswim (Business Operation)

Id: lSr-miImv-w

Length: 13min 4sec (784 seconds)

Published: Sat Jul 18 2015