How to Add Indicators to Your Charts

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Video Transcript:

Hello traders. Welcome to the Thinkorswim tutorial and the third module: Charting. In this lesson I’m going to teach you how to add studies and pattern to your charts. When we talk about studies in Thinkorswim we are talking about indicators.

As you can see I’m still on the three minute chart with only today’s data on it. I’m going to change it to a daily chart to have a larger view on the asset that we are looking at. Now to add an indicator you just click on the status button right here at the top of the chart. Then you go to the dropdown menu add a study. Then you follow the all studies arrow and for instance if you want to add the stochastic oscillator you got to the S on the dropdown menu and click on the stochastic full. This will add the indicator to your chart. Now let’s add a few more indicators to your chart so we have more to work with. Let’s go and add a moving average. So you go to all studies to the M and look for moving averages. Moving average adapted. Let’s add another indicator, let’s add maybe some pivot levels, pivot points. Once you add the indicators you can see that, well it doesn’t look very nice on the chart. You don’t know what period this moving average is, and maybe you want to change the color and the period on it.

Adding indicators to chart

To edit the indicators on your chart you just click on this button at the left of the range tool and the edit studies and strategies window will be prompted out for you. Now, right here you can see that we have a two period simple moving average, we have the daily pivot points, and we have a full stochastic oscillator. If you hover your mouse over the indicator that you want to look at and if you go to the arrow, this will eliminate the indicator. Now, let’s say that we want to eliminate the pivot point. We just click on the X symbol and the pivot points are gone.

Adding indicators on TOS

Now, if you want to modify the moving average or any other indicator for that matter, you just go to the wheel next to the indicator price and you just click on it. This will prompt out the indicator window for customization. We want a 200 period moving average and we want to change the color to that moving average to a green,and maybe we want a bigger width on the moving average and we want it as a dash. If you click okay, it will change the moving averages, as you see right here we have a 200 period simple moving average. The same goes for the stochastic oscillator. If you want to modify it, you just click on the wheel next to the indicator or the stochastic indicator name and go right here and you modify the overbought, the oversold, the k-period, etc. You can do this with any other indicators on your charts. If you click on apply this will apply the changes on our indicators and as you can see the daily pivots are gone and now we a 200 simple moving average on our charts.

Chart indicator settings

If this is a set of indicators that we use a lot of on our charts and we want to save we can do so by clicking on the studies button and then save study set. We are just going to name it 200 MA with stochastic on it. We are not trying to be creative with the names. Now we have saved this study setting and we can load them on any other chart if we want to. I’m going to very rapidly just eliminate these indicators from the chart. I’m going to go to studies and to load a study set which is the 200 MA with the stochastic oscillator, as you can see it is loaded to your chart.

The Thinkorswim platform has a very cool button at the top of the chart called patterns. Now if you click on the bottom and you go to select patterns, this window will be prompted out. Let’s remove all the patterns that I have right here. The Thinkorswim platform will recognize patterns automatically if you choose them.

Automatic chart patterns on TOS

Automatic chart patterns on TOS

For example, if you want the Thinkorswim charting platform to recognize triangle, you just add to the right to the display patterns list and the rising wedges, and let’s add them all. You can also choose only to add a few. If we click okay, all the patterns are added and if you want the Thinkorswim platform to recognize them, you click on patterns and click on the show patterns box. With the show patterns box clicked, the Thinkorswim platform will detect all the patterns that you have chosen to be detected. If you hover your mouse over the pattern it will give you the name, the direction, the predicted price range, etc., and all the information that is necessary for you trade this pattern.

Adam

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