In my Multi-Divergence indicator, there is logic used that breaks the study filter when you try to use it in a scan. So I made a new indicator specifically for scanning by limiting it to only use MACD, RSI or CCI. Now it can be used in a watchlist scan, and it’s called “Pro_Divergence_Scan”. It is still a donor-only script, so use your blog donor info to access it in the Released Thinkscript Studies section of the Google site. If you’re not a donor, you can chip in by clicking the Donate button:
Instructions: Import Pro_Divergence_Scan like any other study, then follow these directions to set up a scan with it.
Go to the scan tab in Think Desktop, and choose “Stock Hacker”. Then you click “Add Study Filter” (First in screenshot below) then click the pencil to edit the default filter that is added (Second in screenshot):
Delete the default ADXCrossover() if there is one (Third in screenshot) and then click “Thinkscript Editor” (Fourth):
Choose your Aggregation period at the top (D for Daily in this example). In the editor, type in “Pro_Divergence_Scan()” and then choose “Inspector” from the side panel. You’ll see the Pro_Divergence_Scan study inputs and the four plots that you can scan for:
- BullDivs for Bullish Divergence on short timeframe
- BearDivs for Bearish Divergence on short timeframe
- BullDivl for Bullish Divergence on long timeframe
- BearDivl for Bearish Divergence on long timeframe
(As an aside, you can also type the name of any other study you have in your library at this thinkscript editor to get access to it for any filter.)
For the scan to trigger, you want to check for when your chosen plot value is equal to 1, because that’s what I coded the indicator to do. To do this, add the string “==1” after the plot name, as shown here:
After this, click “Ok” and run your scan. You may get a pop-up that warns that future changes to the study will not be reflected in this filter. That just means that if you change the code in the Pro_Divergence_Scan, it won’t be reflected here. The filter takes a snapshot of the code when you make the filter. If you update the indicator, just delete the old filter and set it up again as above.
A Look At a Few Charts: Revisited
September 3, 2019As a follow-up to the charts I posted before my annual August hiatus, here’s what happened for each of those names. The yellow line in each of these charts is July 17, when I posted the charts before.
SPY:
The broad market ended up having a big drop as August started, but mostly recovered since then. If you tried to trade breakouts you got chopped to pieces. If you tried to fade breakouts you had to take a lot of heat during the chop for not a lot of benefit. This chart is textbook for how I used to give away a lot of my gains for the year by forcing trades during this time. I’m happy I sat this out. Things seem bleak for the markets going forward with global slowdowns and recession indicators flashing. I’m leaning toward taking more defensive long term positions here.
AAPL:
Earnings were good, AAPL spiked and then sold off all the gains. Then it dropped, and shorts got burned in that chop. In the end, it’s at the same level today as it was when I posted the chart before. Nothing but pain in August.
ROKU:
ROKU was the exception to my August rules. After some contraction before earnings, it popped and didn’t look back. If I weren’t sidelined by rule, I would have gone long on the Swing VWAP breakout at about $135. I have liked ROKU all year and in this case, breaking my rule would have paid off. Missing things like this and accepting it are important to having the right trading mindset. There have been so many good setups in ROKU this year, and I’ve been able to catch a few of them. It’s ok if I don’t get every one. Greed is a killer, as is fear of missing out, and begrudging any moves you may have missed.
TSLA:
TSLA ended up being pretty volatile with the earnings report and different news stories during August. Any of my typical setups would have lit me on fire. Lots of chop, lots of heat whether you traded breakouts or faded them. The only edge was in knowing the news and earnings beforehand, which is basically impossible unless you are cheating with inside info. Another good chart to watch rather than trade.
Going into the fall, I’ll keep an eye on any setups that may occur. I’m biased toward the bearish side, but we’ll see how things pan out.
Tags:AAPL, chop, market_environment, Psychology, ROKU, SPY, swing_points, Thinkscript, trend, TSLA, vwap
Posted in Market Commentary, Psychology, Thinkscript, Trading System Development | 2 Comments »