"E" success

I'd love to see your list- I find it helpful to only have a handful on my workspace:
NFLX
AAPL
QQQ
LNKD
TSLA
FB

This is my current wathlist




This is the search That I do:




here is my shared TOS Scan

[tos.mx]



Edited 2 time(s). Last edit at 04/29/2016 03:53PM by TexasJohn.

NMR,

Are you buying ATM options or something like 70 delta ITM?

I would suggest ATm or just ITM- do some practice trades with both.
see how the move and what ones work for you.
I did an E trade this AM on BIDU just after the open and put in an immediate GTS at 50 cents up (on the option) and was filled 15 minutes later... the option moved 1.50 (ish) but then turned right away. Practice a lot and see how it all works.

MNR,

I have been avoiding taking trades for the first 15 minutes of market open. For the last week I have been doing ATM trades but it looks like I might get better price movement by trading slightly in the money.

For now I have been trading between two and four contracts, depending on premium price, and have been profitable, but I generally been not getting anywhere close to $0.50. Its more like $0.20 to $.30.

Right now my entries are pretty conservative.

Broad Look at taking a trade.

This is my "E" Susses alert grid



Shared Like: [tos.mx]

I have added the below Thinkscript the the "E" Success code.

alert(dotUp1, getsymbol() + " Bull E Trade Signal", alert.bar, sound.bell);
alert(dotDn1, getsymbol() + " Bear E Trade ", alert.bar, sound.bell);

I trade off if the five minure chart, so when I get an alert on in the "E" Success grid, I bring up the underlying, looking at the 30, 20, 10, 8, 5 and 3 minute charts.



Shared Linnk: [tos.mx]

Before I consider taking the trade, I am always aware of the market internals. and ask myself the following;

1. What side of 0 are the NASDAQ UP/Down volume ($VOLD) and Advanced/Decline ($ADD) are at.
2. How far is price from any resistance or support levels as shown in the Shadow Trader chart at center bottom.

I then nly trade in the direction internals are showing me at the the time. If price is very close to one of these lines, I will hold off until price moves through them.



Share Link: [tos.mx]

NMR,

I would be interested in hearing your logic for th BIDU trade the other day.



Edited 2 time(s). Last edit at 05/09/2016 06:57AM by TexasJohn.

TexasJohn and others,

I look at the daily, 60 minute, 15 minute, and 5 minute on watch list for E (5, 10, 20 EMA) and On Balance Volume in same direction. Then if all green or all red in watch list, I open the 5 minute chart and make sure price is on same side of open price, and previous day close, trend is in same direction, ADX > 25, and SPY is trending in same direction. I have a code for the 5 minute time frame which also makes sure there is an E on daily, 60 minute, 15 minute and 5 minute, without having to open charts for those higher time frames. My code plots arrows on chart where there is a trade signal based on the above parameters. This way I only need a watch list, and if all red or all green on watch list, I only have to open one chart instead of many charts for many time frames. This method has been giving excellent signals with the following stocks:

SPY, QQQ, AMZN, TSLA, FB, AAPL, NFLX, TWTR, AAL, UAL, STX, GPS

I have found that 30, 20, 10, 8, 3, 2 are too close and some of those time frames are redundant. Daily, 60, 15 and 5 minute time frames give better trend and E signals.

I also have a script which automatically plots support/resistance lines, opening range and previous day high and low. When I enter a trade I make sure the support/resistance lines are not too close, and there is room for the trade. Additionally, if the stock price move is too extended on 5 minute when I get the signal, then I wait for a pullback to the zone between 8 EMA and 20 EMA to enter the trade and I set my stop loss beyond the 50 EMA.

In my experience, 0.30 delta OTM options give much higher dollar amount profit than ATM or ITM options, for same dollar amount spent on buying those options. Just make sure the option expiration is more than a week, and don't hold it more than a few hours to eliminate theta risk. Please see my following posts in past, proving this with a practical example. Read all the way to the bottom of the thread:

[www.researchtrade.com]

For exits, I scale out of 1/2 position once price has moved ATR x 1.5 from entry and move my stop loss to breakeven. Final exit is when price closes beyond 8 EMA in opposite direction to trade or if price hits a strong support/resistance level.

By the way $VOLD is completely useless and often goes completely opposite to SPY direction, all day long. $ADD is much more reliable. Additionally you can use the TOS volume profile to see value area high and low lines, VPOC, low volume nodes and high volume nodes which give you excellent support/resistance lines based on actual price and volume action. This way you can use the TOS volume profile study on the stock you are trading to get actual lines for that stock, instead of using the Shadow Trader lines for /ES.


Following is my watch list script for daily, 60 minute, 15 minute and 5 minute columns:

def MA5 = ExpAverage(close, 5);
def MA8 = ExpAverage(close, 8);
def MA10 = ExpAverage(close, 10);
def MA20 = ExpAverage(close, 20);
def MA50 = ExpAverage(close, 50);

def Eup = MA5 > MA10 and MA10 > MA20;
def Edn = MA5 < MA10 and MA10 < MA20;

def Net = if close > open then volume*(close - open)/(high - low) else if open > close then -volume*(open -
close)/(high - low) else 0;
def myOBV = TotalSum(Net);
def OBVup = myOBV > myOBV[1];
def OBVdn = myOBV < myOBV[1];

plot Bull = Eup and OBVup;
def Bear = Edn and OBVdn;

Bull.AssignValueColor(if Bull then Color.LIGHT_GREEN else if Bear then Color.PINK else Color.BLACK);
AssignBackgroundColor(if Bull then Color.LIGHT_GREEN else if Bear then Color.PINK else Color.CURRENT);

============================================================================================================

Following is the script I use for entry on 5 minute chart. This code checks if price is on same side of both open price and previous day close as the direction of the trade, trend is in same direction, ADX > 25, and SPY is trending in same direction. It also makes sure there was E on daily, 60, 15 and 5 minute and OBV was in same direction in those time frames. You can use this script also on 2 minute or 3 minute time frames for entry, but I have found that 5 minute time frame gives higher win rates. This script also adds labels telling you if there is a long or short signal, whether SPY is in up trend or down trend, ATR of the time frame, and whether price is above or below previous day high or low.

def ATR = WildersAverage(TrueRange(high, close, low), 6);

def MA5 = ExpAverage(close, 5);
def MA8 = ExpAverage(close, 8);
def MA10 = ExpAverage(close, 10);
def MA20 = ExpAverage(close, 20);
def MA50 = ExpAverage(close, 50);

def MA5D = ExpAverage(close(period = "day" ), 5);
def MA10D = ExpAverage(close(period = "day" ), 10);
def MA20D = ExpAverage(close(period = "day" ), 20);

def MA5S = ExpAverage(close(period = "1 hour" ), 5);
def MA10S = ExpAverage(close(period = "1 hour" ), 10);
def MA20S = ExpAverage(close(period = "1 hour" ), 20);

def MA5FF = ExpAverage(close(period = "15 min" ), 5);
def MA10FF = ExpAverage(close(period = "15 min" ), 10);
def MA20FF = ExpAverage(close(period = "15 min" ), 20);

def MA5FV = ExpAverage(close(period = "5 min" ), 5);
def MA10FV = ExpAverage(close(period = "5 min" ), 10);
def MA20FV = ExpAverage(close(period = "5 min" ), 20);

def SPY8 = ExpAverage(close("SPY" ), 8);
def SPY20 = ExpAverage(close("SPY" ), 20);
def SPY50 = ExpAverage(close("SPY" ), 50);

def Eup = MA5 > MA10 and MA10 > MA20;
def Edn = MA5 < MA10 and MA10 < MA20;
def UpTrend = close > MA50 and MA8 > MA20;
def DnTrend = close < MA50 and MA8 < MA20;

def EupD = MA5D > MA10D and MA10D > MA20D;
def EdnD = MA5D < MA10D and MA10D < MA20D;
def Eup60 = MA5S > MA10S and MA10S > MA20S;
def Edn60 = MA5S < MA10S and MA10S < MA20S;
def Eup15 = MA5FF > MA10FF and MA10FF > MA20FF;
def Edn15 = MA5FF < MA10FF and MA10FF < MA20FF;
def Eup5 = MA5FV > MA10FV and MA10FV > MA20FV;
def Edn5 = MA5FV < MA10FV and MA10FV < MA20FV;

def SPYup = close("SPY" ) > SPY50 and SPY8 > SPY20;
def SPYdn = close("SPY" ) < SPY50 and SPY8 < SPY20;

def OSup = close > open(period = "day" ) + ATR;
def OSdn = close < open(period = "day" ) - ATR;

def NSup = close > close(period = "day" )[1] + ATR;
def NSdn = close < close(period = "day" )[1] - ATR;

def Net = if close > open then volume*(close - open)/(high - low) else if open > close then -volume*(open -
close)/(high - low) else 0;
def myOBV = TotalSum(Net);
def OBVup = myOBV > myOBV[2];
def OBVdn = myOBV < myOBV[2];

def NetD = if close(period = "day" ) > open(period = "day" ) then volume*(close(period = "day" ) - open(period = "day" ))/(high(period = "day" ) - low(period = "day" )) else if open(period = "day" ) > close(period = "day" ) then -volume*(open(period = "day" ) - close(period = "day" ))/(high(period = "day" ) - low(period = "day" )) else 0;
def myOBVD = TotalSum(NetD);
def OBVupD = myOBVD > myOBVD[1];
def OBVdnD = myOBVD < myOBVD[1];

def Net60 = if close(period = "1 hour" ) > open(period = "1 hour" ) then volume*(close(period = "1 hour" ) - open(period = "1 hour" ))/(high(period = "1 hour" ) - low(period = "1 hour" )) else if open(period = "1 hour" ) > close(period = "1 hour" ) then -volume*(open(period = "1 hour" ) - close(period = "1 hour" ))/(high(period = "1 hour" ) - low(period = "1 hour" )) else 0;
def myOBV60 = TotalSum(Net60);
def OBVup60 = myOBV60 > myOBV60[1];
def OBVdn60 = myOBV60 < myOBV60[1];

def Net15 = if close(period = "15 min" ) > open(period = "15 min" ) then volume*(close(period = "15 min" ) - open(period = "15 min" ))/(high(period = "15 min" ) - low(period = "15 min" )) else if open(period = "15 min" ) > close(period = "15 min" ) then -volume*(open(period = "15 min" ) - close(period = "15 min" ))/(high(period = "15 min" ) - low(period = "15 min" )) else 0;
def myOBV15 = TotalSum(Net15);
def OBVup15 = myOBV15 > myOBV15[1];
def OBVdn15 = myOBV15 < myOBV15[1];

def Net5 = if close(period = "5 min" ) > open(period = "5 min" ) then volume*(close(period = "5 min" ) - open(period = "5 min" ))/(high(period = "5 min" ) - low(period = "5 min" )) else if open(period = "5 min" ) > close(period = "5 min" ) then -volume*(open(period = "5 min" ) - close(period = "5 min" ))/(high(period = "5 min" ) - low(period = "5 min" )) else 0;
def myOBV5 = TotalSum(Net5);
def OBVup5 = myOBV5 > myOBV5[1];
def OBVdn5 = myOBV5 < myOBV5[1];

def ADX = DMI(14, AverageType.WILDERS).ADX;
def Trend = ADX >= 25;

def Yhigh = high(period = "day" )[1];
def Ylow = low(period = "day" )[1];
def Above = close[1] > Yhigh + ATR;
def Below = close[1] < Ylow - ATR;

def Slow = StochasticMomentumIndex().AvgSMI;
def Fast = StochasticMomentumIndex().SMI;
def Up = Fast > Slow;
def Dn = Fast < Slow;

def Bull = OSup and NSup and Eup and UpTrend and OBVup and Up and Trend and SPYup;
def Bear = OSdn and NSdn and Edn and DnTrend and OBVdn and Dn and Trend and SPYdn;

def BullD = EupD and OBVupD;
def BearD = EdnD and OBVdnD;

def Bull60 = Eup60 and OBVup60;
def Bear60 = Edn60 and OBVdn60;

def Bull15 = Eup15 and OBVup15;
def Bear15 = Edn15 and OBVdn15;

def Bull5 = Eup5 and OBVup5;
def Bear5 = Edn5 and OBVdn5;

def BullSig = Bull and Bull5 and Bull15 and Bull60 and BullD;
def BearSig = Bear and Bear5 and Bear15 and Bear60 and BearD;
def Neutral = !BullSig and !BearSig;

plot BS = !BullSig[1] and BullSig;
BS.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);
BS.AssignValueColor(Color.UPTICK);
BS.SetLineWeight(3);
plot SS = !BearSig[1] and BearSig;
SS.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_DOWN);
SS.AssignValueColor(Color.DOWNTICK);
SS.SetLineWeight(3);

Alert(BS, "Bull E Trade", Alert.BAR, Sound.RING);
Alert(SS, "Bear E Trade", Alert.BAR, Sound.RING);

AddLabel(BullSig, "LONG", Color.UPTICK);
AddLabel(BearSig, "SHORT", Color. DOWNTICK);
AddLabel(Neutral, "NO", Color.GRAY);
AddLabel(yes, "SPY", if SPYup then Color.UPTICK else if SPYdn then Color.DOWNTICK else Color.GRAY);
AddLabel(yes, "ATR = " + Round(ATR, 2), Color.GRAY);
AddLabel(Above, "ABOVE", Color.UPTICK);
AddLabel(Below, "BELOW", Color.DOWNTICK);

============================================================================================================

Following is the script for S/R lines based on actual price action, including 5 minute and 30 minute opening range, pivot point, previous day high and low, open price, previous day close, intraday high and low, 10 and 30 day high and low, daily 8, 21, 50, 200 EMA lines, and daily ATR lines. This script is for white background charts. Please change the colors in the script if you use black background charts.

#Plot opening range high / low
script OpenRange {
input ORtime = 5;

def FirstBar = SecondsFromTime(0930) >= 0 and SecondsFromTime(0930) < 60;
def RangeTime = SecondsFromTime(0930) >= 0 and SecondsFromTime(0930) < 60 * ORtime;
def Rhigh = if FirstBar then high else if RangeTime and high > Rhigh[1] then high else Rhigh[1];
def Rlow = if FirstBar then low else if RangeTime and low < Rlow[1] then low else Rlow[1];

plot h = if RangeTime or SecondsTillTime(0930) > 0 then Double.NaN else Rhigh;
plot l = if RangeTime or SecondsTillTime(0930) > 0 then Double.NaN else Rlow;
}

def first30 = SecondsFromTime(0930) >= 0 and SecondsTillTime(1000) >= 0;
def today = GetLastDay() == GetDay();
def ATR = WildersAverage(TrueRange(high, close, low), 6);

plot h5 = if !today then Double.NaN else if !first30 then Double.NaN else OpenRange(5).h;
h5.SetDefaultColor(Color.GRAY);
plot l5 = if !today then Double.NaN else if !first30 then Double.NaN else OpenRange(5).l;
l5.SetDefaultColor(Color.MAGENTA);
plot h30 = if !today then Double.NaN else OpenRange(30).h;
h30.SetDefaultColor(Color.GRAY);
plot l30 = if !today then Double.NaN else OpenRange(30).l;
l30.SetDefaultColor(Color.MAGENTA);

#Plot yesterday's high / low
plot Yhigh = if !today then Double.NaN else high(period = "day" )[1];
Yhigh.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
Yhigh.SetDefaultColor(Color.UPTICK);
Yhigh.SetLineWeight(2);
plot Ylow = if !today then Double.NaN else low(period = "day" )[1];
Ylow.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
Ylow.SetDefaultColor(Color.DOWNTICK);
Ylow.SetLineWeight(2);

#Plot pivot, open price and previous day close
plot Pivot = if !today then Double.NaN else (high(period = "day" )[1] + low(period = "day" )[1] + close(period = "day" )[1]) / 3;
Pivot.SetStyle(Curve.MEDIUM_DASH);
Pivot.SetDefaultColor(Color.PLUM);
Pivot.SetLineWeight(1);
plot OpenPrice = if !today then double.NaN else if SecondsFromTime(0930) < 0 then Double.NaN else open(period = "day" );
OpenPrice.SetStyle(Curve.MEDIUM_DASH);
OpenPrice.SetDefaultColor(Color.BLUE);
OpenPrice.SetLineWeight(2);
plot ClosePrice = if !today then Double.NaN else close(period = "day" )[1];
ClosePrice.SetStyle(Curve.MEDIUM_DASH);
ClosePrice.SetDefaultColor(Color.DOWNTICK);
ClosePrice.SetLineWeight(2);

AddCloud(h5, l5, Color.LIGHT_GREEN);
AddCloud(h30, l30, Color.LIGHT_GREEN);

#Plot 10 day and 30 day high/low
plot TenHigh = if !today then Double.NaN else Highest(high(period = "day" )[1], 10);
TenHigh.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
TenHigh.SetDefaultColor(Color.UPTICK);
TenHigh.SetLineWeight(3);
plot ThirtyHigh = if !today then Double.NaN else Highest(high(period = "day" )[1], 30);
ThirtyHigh.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
ThirtyHigh.SetDefaultColor(Color.UPTICK);
ThirtyHigh.SetLineWeight(4);
plot TenLow = if !today then Double.NaN else Lowest(low(period = "day" )[1], 10);
TenLow.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
TenLow.SetDefaultColor(Color.DOWNTICK);
TenLow.SetLineWeight(3);
plot ThirtyLow = if !today then Double.NaN else Lowest(low(period = "day" )[1], 30);
ThirtyLow.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
ThirtyLow.SetDefaultColor(Color.DOWNTICK);
ThirtyLow.SetLineWeight(4);

#Plot intraday high and intraday low
def peak = high;
def valley = low;
def h3 = peak > Highest(peak[-3], 3);
def dayHigh = if GetDay() != GetDay()[1] then peak else if h3 and peak > dayHigh[1] then peak else dayHigh[1];
def l3 = valley < Lowest(valley[-3], 3);
def dayLow = if GetDay() != GetDay()[1] then valley else if l3 and valley < dayLow[1] then valley else dayLow[1];

plot DH = if !today then Double.NaN else dayHigh;
DH.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
DH.SetDefaultColor(Color.UPTICK);
def countp = if IsNaN(dayHigh) and !IsNaN(dayHigh[1]) then 1 else countp[1] + 1;
plot peakext = if IsNaN(dayHigh) then GetValue(DH, countp) else Double.NaN;
peakext.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
peakext.SetDefaultColor(Color.UPTICK);
plot DL = if !today then Double.NaN else dayLow;
DL.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
DL.SetDefaultColor(Color.DOWNTICK);
def countt = if IsNaN(dayLow) and !IsNaN(dayLow[1]) then 1 else countt[1] + 1;
plot valleyext = if IsNaN(dayLow) then GetValue(DL, countt) else Double.NaN;
valleyext.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
valleyext.SetDefaultColor(Color.DOWNTICK);

# Plot daily ATR range levels
def DATR = WildersAverage(TrueRange(high(period = "day" ), close(period = "day" ), low(period = "day" )),
14);

plot UB = if today then low(period = "day" ) + DATR else Double.NaN;
UB.SetDefaultColor(Color.DOWNTICK);
UB.SetPaintingStrategy(PaintingStrategy.DASHES);
UB.SetStyle(Curve.SHORT_DASH);
plot LB = if today then high(period = "day" ) - DATR else Double.NaN;
LB.SetDefaultColor(Color.UPTICK);
LB.SetPaintingStrategy(PaintingStrategy.DASHES);
LB.SetStyle(Curve.SHORT_DASH);

#Plot daily moving average levels
def today1 = GetDay() > GetLastDay() - 2 and GetYear() == GetLastYear();
plot D8MA = if !today1 then double.NaN else ExpAverage(close(period = "day" ), 8);
D8MA.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
D8MA.SetDefaultColor(Color.DARK_GRAY);
D8MA.SetLineWeight(2);
plot D21MA = if !today1 then double.Nan else ExpAverage(close(period = "day" ), 21);
D21MA.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
D21MA.SetDefaultColor(Color.DARK_GREEN);
D21MA.SetLineWeight(2);
plot D50MA = if !today1 then double.NaN else ExpAverage(close(period = "day" ), 50);
D50MA.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
D50MA.SetDefaultColor(Color.MAGENTA);
D50MA.SetLineWeight(2);
plot D200MA = if !today1 then double.NaN else ExpAverage(close(period = "day" ), 200);
D200MA.SetPaintingStrategy(PaintingStrategy.HORIZONTAL);
D200MA.SetDefaultColor(Color.BLUE);
D200MA.SetLineWeight(2);



Edited 3 time(s). Last edit at 05/07/2016 06:42PM by tanman.

nice code tanman, The E system has always been a mystery for me, In some of the shorter time frames stocks appear oversold or overbought once the signal fires, I like your longer time frames. In the second script that labels the ATR and shows the SPY trend have you figured out a way to scan for the "bull" and "bear" signals?

Good stuff, thanks for posting

Anyone have any suggestions on the best ways on how to trade the 5 and 30 min ranges?

Mtut -
New to this forum and very impressed by your success of on the E-Signal. Really appreciate your efforts and sharing on the forum.
Bunch of entries from past posts have been modified or deleted.
I have the Watchlist part figured and all ready to go.
Could you share the latest code and setup for E Signal.

Thx

Mtut,

can you repost the scripts for these two codes?

Thanks.

mtut Wrote:
-------------------------------------------------------
> Once again, at the open and for as long as you
> wish to watch the market for the day, trade when
> you see one of the following on ALL charts
>
> [i.imgur.com]
>
> or
>
> [i.imgur.com]
>
> Perhaps, at the open, all signals may have carried
> over from the previous day and therefore you may
> not want to trade that stock. Look for the BLACK
> arrows on the price chart. They indicate when the
> E signal became true. It several candles have
> formed since the BLACK arrow, you may choose to
> pass on that stock as well. But for the most part,
> if you see the signals, make the trade.
>
> Keep asking questions, until as Gary says, you can
> trade these signals as easy as you breath!