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New Candlestick Pattern Tool on thinkorswim

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November 21, 2016
iStock.com/a_lis

From “Concealing Baby Swallow” to “Identical Three Crows” it may seem as though all the innuendoes and hidden trader slang has been accounted for. But in the case that your creative pun has not been named just yet, TD Ameritrade is giving you the ability to create your very own candlestick pattern in their latest thinkorswim® platform release. Now you can create patterns that include any number of Up, Down, or Doji candles with any given relationship to one another. This is all done with a drag and drop interface so there is no need to write any code or understand fancy thinkScript™ functions. All you have to do is just draw the pattern you want to see.

Just follow these simple steps to get started:

  • From your charts choose Patterns and Select Patterns
  • Once on the Candlestick tab you will see the Create button at the bottom which brings you to the Candlestick Pattern Editor
  • In the Editor you can define each individual piece as an Up Candle, Down Candle, Doji, or a Mix group of candles. This is done by clicking the plus sign on the undefined candle.
  • The Open, High, Low, and Close of each candle can be associated with any point on another candle once defined. This is done by dragging one point and dropping it on another point. The wizard will ask you to define the condition and the candles will adjust appropriately.
  • If dragging and dropping is not your style you can use the drop down menus below the candles to edit the candles and your conditions

FIGURE 1: CANDLESTICK PATTERNS.

The latest feature on TD Ameritrade’s thinkorswim platform helps traders create their own candlestick patterns.  

Once your candlestick pattern is built and properly named the fun begins. Just as any existing candlestick pattern works, an icon of your choice will be placed above or below the final candle in your pattern to display which candle makes the pattern complete. This icon is chosen with the drop down at the top of the Candle Stick Pattern Editor.

The pattern will also be written in thinkScript on the adjacent tab, which allows you to copy the source code out and use it throughout the software to Scan, Alert, and even trigger orders just like any of the existing thinkowswim patterns.

For more information on how to use this feature, watch the following video:

We hope you enjoy this new feature as much as we do! Be sure to let us know what you think. Reach out on Twitter or drop a line to support@thinkorswim.com.