Edge Signals Indicator for ThinkorSwim

Edge Signals is our members-only overbought/oversold indicator for ThinkorSwim. It plots a green up arrow for a bullish signal and a red down arrow for a bearish signal on the price chart, where price may be starting to reverse. It can also color candles on a 6-color scale from dark green to dark red.

The 6 colors are a scale. Dark green is the outermost zone on the upper side, then green, yellow, orange, red and dark red, the outermost zone on the lower side. Each candle's color shows where it sits on that scale. If you don't find the colors useful, set colorOn to no and keep the arrows.

Open the study's settings from the studies menu, find colorOn and set it to no. The candles go back to your normal chart colors, and the arrows stay. Set it back to yes to bring the 6 colors back. In the download, colorOn is set to yes.

Set alertsOn to yes, since it is off by default. The alert fires when the bar before the current one has an Edge Signal, with the message Bull Edge Signal or Bear Edge Signal. It waits for that bar because a signal on the bar still printing can appear and then disappear before the bar closes.

An arrow on the bar that is still forming can print and then go away as new prices come in. Once the bar closes, its signal is final. That is why the alerts check the bar before the current one. Wait for the bar to finish before you act on a new arrow.

Use the Volatility Box zones as the level and the Edge Signal as the confirmation. The Edge Signal confirms price reversing to or from a zone. That is our fade setup, the use we talk about most. The same idea works with Fibonacci cluster zones and previous support and resistance.

No. In a trend, I look only at arrows in the trend's direction: green arrows in an uptrend and red arrows in a downtrend, and I ignore the rest. I use the Market Pulse most often to read the trend, and moving averages or VWAP work too. At a level, the arrow confirms a turn you already expect there.

The download is on this page for Volatility Box members. Log in with your Volatility Box credentials and download the zip, which holds one study file, TI_EdgeSignalsSTUDY.ts. The page always has the most updated version. Then import the file into ThinkorSwim as a study and add it to your chart.