Not only does the thinkorswim® trading platform have a well-rounded list of predefined patterns traders can choose from, but it also offers traders the ability to create custom candlestick patterns with the Candlestick Pattern Editor. These custom patterns can include any number of up, down, or doji candles related to one another. A drag-and-drop interface eliminates the need to write code or use thinkScript® functions.
How to create custom candlestick patterns
To create candlestick patterns on thinkorswim, follow these steps:
- On the Charts tab, select the Patterns tab on the far right, then Select patterns…
- On the Select Patterns box, select the Candlestick tab. The Create button at the bottom opens the Candlestick Pattern Editor.
- Select the + sign on the undefined candlestick to define the candle as up, down, or doji. Traders can also create mixed candles and set an ascending or descending trend.
- The open, high, low, and close prices of each candle can be associated with any point on another candle once the candle is defined. This is done by using the drag-and-drop function—just drag one point of the candle and drop it to another point. The Condition Wizard will prompt traders to define the condition, and the candles will adjust appropriately.
- It's also possible to use the drop-down lists below the candles to edit the candles and conditions.
Custom Candlestick Pattern Editor
Source: thinkorswim platform
After building the pattern, traders can name it. When satisfied, select Save, then OK. Just as any existing candlestick pattern works, an icon is placed above or below the final candle in the pattern to display which candle makes the pattern complete. This icon is chosen with the drop-down list at the top of the Candlestick Pattern Editor.
The pattern is also transferred to the thinkScript Editor on the adjacent tab. Just like all the existing thinkorswim patterns, this editor allows traders to copy the source code and use it when running a scan, setting an alert, or employing many of the platform's other trigger functions.
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