How to find stocks which are producing lot of candles on the Range Charts

December 27th, 2018, 01:21 PM

Hi Team,

This is my very first post, so please excuse me if I posted this in a wrong forum

I recently started learning to day trade & am using Thinkorswim from past 3-4 weeks and am very comfortable in writing thinkscript, searching for stocks, paper trading, etc. I have recently discovered the range charts and am completely in love with their simplistic view of price action. I have written a couple of custom studies with which I have been paper trading from last 1 week.

My scripts depend on stock being very liquid - as my scripts can identify patterns and then I can trade on them.
One example of a beautifully moving stock would be BABA - just since 6:30 AM today till 9 AM, it has produced so many beautiful price action patterns which I could trade on.

PROBLEM
However, most of the stocks which my scanner is picking up look like this - UCTT - as you can see, there's hardly any price action to trade on (in the same 6:30 AM - 9 AM time frame)

My scan settings are very simple at the moment - apart from volume, % change & price, I am scanning for my thinkscript indicator.

QUESTION
How do I find stocks which are producing a ton of patterns on the range chart?
Please do note that even though I appear to be scanning in a time range (of 1 min), I am using range charts. ToS scanner has no way for me to switch it to a range based scan.

Any hints, help would be greatly appreciated.
Once I validate my setup, I would love to give away my indicators for others to improve and reuse & profit from

Cheers!

December 27th, 2018, 01:24 PM

FYI : The reason I am using 1m time frame in scanner - is if the candle recently made a price change in time chart, it might be true on the range chart also.

Sadly, I couldn't find a way to run my scanner on range chart - like 20 ticks range, etc.

December 28th, 2018, 02:12 AM

I tried digging into this today & found a good proxy solution using ThinkScript

Code

input minTrades = 5000;
def totalTrades = TotalSum(tick_count);
AddLabel(yes, " Trades : " + totalTrades + " ", Color.WHITE);
plot isTradeable = totalTrades > minTrades;

Following script prints how many trades have happened in the graph. I eye-balled some liquid stocks which I liked paper-trading and came to a min number of 5k trades.

Then used the Stock scanner to validate presence of this plot (isTradeable).

I'll be testing this tomorrow morning to see if it works

Fingers crossed!

December 30th, 2018, 02:12 PM

makuchaku

Code

input minTrades = 5000;
def totalTrades = TotalSum(tick_count);
AddLabel(yes, " Trades : " + totalTrades + " ", Color.WHITE);
plot isTradeable = totalTrades > minTrades;

FYI, this doesn't works - many many false positive signals.
Instead, i tried restricting my scan to Russel 3000 stocks - which was much better output - however, still not perfect.

I am still trying to find an answer.
Please feel free to drop in your suggestions

Thanks

How to find stocks which are producing lot of candles on the Range Charts

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How to find stocks which are producing lot of candles on the Range Charts