Smarter Earnings

Build an earnings indicator for ThinkOrSwim which allows you to analyze and play the actual day of earnings, compared to pre/post earnings.


The Smarter Earnings indicator is most useful for trading the actual day of earnings, and finding common patterns between "Gap n Go" and "Gap Fills."

Welcome to the ninth episode of “How to Thinkscript”. With earnings around the corner, in today’s video, we’re going to be building our very own “Smarter Earnings Indicator.”

We are, home of the Volatility Box, the most robust ThinkOrSwim indicator based on statistical models built for large institutions and hedge funds.

Also, an announcement. Upon (tons) of requests, we've updated the V-Score indicator to now allow you to set custom standard deviations in the price label.

Of course, it's completely free.

For our earnings indicator, we're focusing only on the day OF the actual earnings (or after we get the earnings data). So if we had pre-market earnings, we're looking to trade that same day.

However, if we had post-market earnings, then we're looking to trade the next day.

If you’d like to skip the tutorial and start playing with the indicator right away, you can download the Smarter Earnings Indicator for free below.

Smarter Earnings Tree Diagram

Below is the Smarter Earnings Tree Diagram that we shared in the tutorial video:

Smarter Earnings Tree Diagram

There are two "strategies" that we have in this current version of the indicator.

1. Gap Fills - Either a gap up or a gap down filled, with an earnings beat or miss as *nice to haves*

2. Gap N' Go - Either a gap up or a gap down, and then we continue in that direction as a result of either an earnings beat or miss

An Example Chart of ROKU

Below is a screenshot of ROKU on a Daily 2-Year chart:

Smarter Earnings ROKU chart

Since ROKU reports earnings after market close, we want to look at the next day's trading when checking our statistics (i.e. if ROKU reports today after the close, we'll be trading using this data tomorrow):

- Total Number of Earnings: 8 Of those 8 earnings
- Of those 8 earnings, 1 of them was a gap up which was filled (meaning we gapped up, and price then came down to fill the gap to at least the previous daily candle's high)
- Of those 8 earnings, 5 of them were Gap N' Go's
- 4 of those 5 Gap N Go's were in the bullish direction, implying that we gapped up on an earnings beat and continued to move an average of $8.27 in the bullish direction
- 1 of those 5 Gap N Go's was in the bearish direction, implying that we gapped down and continued to move $5.48 in the bearish direction

Conclusion & Download

Hopefully, your brain is already cycling with ideas on how you can build scans and continue to take this indicator further. We only explored gaps, and a small sub-section of that in this indicator.

You can continue to add more permutations, that fit your trading style around earnings trades.

We’re working on something special around an intersection between the Volatility Box (for stocks) and using that to trade earnings, so stay tuned members.

Click the button below to download the Smarter Earnings Indicator

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