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.
- Go to Charts
- Choose DIA
- Set your timeframe to D (1 Y : 1 D)
- Click on Patterns (top-right)
- Click on Classic
- Choose Channel Up, Channel Down, Double Top, Double Bottom
- Click Ok