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Friday, July 2, 2021

How to reproduce Finviz patterns in Think Or Swim (TOS)

Finviz has a great feature where it will analyze a chart and automatically show you some basic Technical Analysis (TA) patterns such as Double Tops, Channels, etc. In my effort to consolidate to as few platforms as possible while still being effective, I've wanted to use Think Or Swim (TOS) for automatic TA patterns instead of using TOS for trading and Finviz for those patterns.

I do believe that TA can be effective, but only if I keep in mind that TA works so long as there is no external input into the stock price, e.g., earnings, market-wide up or downturns, etc. That is, to me, TA is more about watching the status quo and riding that more than anything.

Anyway, back to patterns, I found that this can be done using TOS charts and that the analysis is very close in TOS to what Finviz produces.

By way of example, let's chart $DIA in Finviz and TOS.

In Finviz, I'm shown both a channel and a potential double top:

Now, let's reproduce that in TOS.

  1. Go to Charts
  2. Choose DIA
  3. Set your timeframe to D (1 Y : 1 D)
That will give you this:


Now, let's add some software-driven TA in TOS:
  1. Click on Patterns (top-right)
  2. Click on Classic
  3. Choose Channel Up, Channel Down, Double Top, Double Bottom
  4. Click Ok
And here you go:


The chart in TOS now shows you a long-term and short-term channel. What I am not seeing is a double to in TOS as shown in Finviz. That's not necessarily good or bad, as software-driven TA really should be more about helping you "zoom out" and check your own TA, but this is a great start!

Also, you will have noticed that you can configure each pattern in the Pattern screen. Play around with those settings! You can increase/decrease the sensitivity of what triggers a pattern to be shown on the chart.




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