How to Quickly Find Price Reversals with Volume Profile Coding | thinkScript Studies on thinkorswim

thinkScript Studies on thinkorswim | Michael Fairbourn | 8-9-24
Characteristics and Risks of Standardized Options. bit.ly/2v9tH6D
Within this presentation, we initially created a thinkScript that looked for up volume and down volume conditions on the NYSE, which we used to divergence indications. Next, we used a thinkscript scan that helped to find prices trading near the volume profile point of control for signs of price reversals.
Have a market idea, but you just can't find the tool to put it into action? Create your own custom indicator with thinkScript. Your education coach will build custom trading tools as you watch to help give you an understanding of creating and using scripts on the thinkorswim platform. Time to tinker with those technicals.
1023-3KVR
Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the Options Disclosure Document titled "Characteristics and Risks of Standardized Options" before considering any option transaction.
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Scripts are for educational purposes only, are not a recommendation, and are not guaranteed for time or accuracy.
Today's thinkScripts:
Volume Profile Point of Control Scan: tos.mx/!YXqTd4pD
Pivot Point Bounce Below S1: tos.mx/!USzvhYXs
Pivot Point Bounce Above S3: tos.mx/!jsetlIWo
Reversals, Trend & RSI: tos.mx/!IASzAXUV
MACD Custom Column: tos.mx/!fcyfkymT
Earnings Gap & Go: tos.mx/!dQJ1zz5b
Breakout above 30 bar high: tos.mx/!dPHY1WCT
MACD: Positive Divergence: tos.mx/!QZee2RjH
MACD Momentum: tos.mx/!3WDSyMGa
Lows Column: tos.mx/!yPYPkmk9
DailyPLProfitLossOnChart: tos.mx/!iCB1MJc3
Average Price & Quantity on Chart: tos.mx/!Yqp7n1W7
Strategies Session 1 : ruclips.net/user/li...
Strategies Session P2: ruclips.net/user/li...
#SchwabCoaching #TraderTalks #mikefairbourn #thinkorswim

[@ks63ship]

love combined indicators

[@tradertalkswebcasts]

Glad to hear it was helpful! ^MF

[@richardjudge2322]

Thank You Michael Fairbourn. Have a great weekend.

[@tradertalkswebcasts]

Welcome Richard, nice weekend! ^MF

[@sherrylander2643]

Thanks for the volume demonstration.

[@tradertalkswebcasts]

Glad you found it helpful. ^MF

[@davisdj8320]

Great Stuff Michael, enjoyed the video.

[@tradertalkswebcasts]

Glad you enjoyed it, ^MF

[@19mrscott69]

There is ADV and DEC for the SP just add SP to the end of $UVOL and $DVOL

[@tradertalkswebcasts]

Thanks, can be added to the indicator. ^MF

[@kwise109]

in your script your looking back 252 bars or days . i noticed volume profile in different time frames changes ex: 20 day 15 minute , is different from 30 day 1 hour, even the 20 day 3 minute looks different from the previous and that includes the 1 year daily chart. So in a smaller time frame i am seeing a more accurate POC to the currant price ? and would that still be accurate if i looked at a 3 week daily chart? If a stock price has risen or fallen 15% in the past year the average POC would certainly be guidance but the more currant POC would show resistance or support for currant price. Thank you for your video !! This could be very helpful. you mentioned something about TTM squeeze , is there a video tweaking the TTM ? please post if possible. Thanks stay safe

[@tradertalkswebcasts]

Hi, yes I think with a smaller data set it could improve the accuracy. On the TTM squeeze, I'd received a comment, but couldn't make full sense of it, so I was asking for additional information on the request. Thanks for feedback. ^MF

[@rakeshchandra3549]

Thanks MF but I did not get the volume discussion at all in terms of applying it. And not for the first time either. I have listened to earlier webcasts on this topic. Perhaps I will sign up for a 1-1 session to help further explain.

[@tradertalkswebcasts]

Sounds good, here is a quick description as well. The Volume Profile study represents trading activity over a time period at specified price levels. Considering the input-defined aggregation period, the Volume Profile plots a histogram showing price distribution, revealing the dominant price values in terms of volume. It shows the price levels where demand was highest and lowest. Hope this helps. ^MF

[@ravindramaddineni1633]

cumulative volume is no where used after defining. So I commented and ran again and fetch the same results.
#Calculate total volume over the period
# def totalVolume = Sum(volume, length);
#Calculate the cumulative volume (identify key levels)
# def cumulativeVolume = TotalSum(volume * close) / totalVolume;

[@tradertalkswebcasts]

Thanks for you input, will check it out today, ^MF

[@fonzidefonz8534]

Good morning. I would like some help with getting volume bars that indicate the amount of buying and selling (green and red) into one single volume bar if possible. I've seen it in some videos . Is there some kind of transcript? Thank you

[@tradertalkswebcasts]

Here's a possible idea - BuySellVolumeBars: tos.mx/!8hw6eHmn
But a couple of things to remember... there is always a buy and sell component to volume. There is no way to be sure that a volume increment is buying volume or selling volume unless interpolating via where the trade happened relative to bid/ask, and this indicator simply looks at where closing price falls relative to high/low to paint the candles.
Finally, remember that Show Volume Subgraph must be selected in chart settings to use this script, which is not guaranteed as to time or accuracy. ^BW

[@sjsphotog]

FIRST - Great class as always MF. Keep it up

[@tradertalkswebcasts]

Glad you found it useful! ^MF

[@ramsineivaz]

thanks but none of you links work above!

[@tradertalkswebcasts]

I've tested them and have got them working. Can you let me know you're process you're using for adding them? Thanks, MF