How to Scan for Stocks Closing at a Year-End High in ThinkOrSwim (Free Code)

Overview

Introduction

This tutorial teaches traders to identify stocks hitting Year-To-Date (YTD) highs or lows on December 31st using ThinkOrSwim's scanner. The custom script analyzes 253 trading days to pinpoint symbols showing exceptional strength or weakness as markets close for the year. This method helps traders spot potential trend continuations for the upcoming fiscal period.

By comparing current price action to yearly extremes, traders gain insights into market leadership and sector rotation. The scan identified 39 bullish candidates like TSLA and 4 bearish symbols like GILD in 2020’s test run. These watchlists serve as strategic starting points for swing trades or position sizing decisions.

The tutorial combines technical scripting with practical trading applications, including integration with Stock Volatility Box alerts. Users learn to automate watchlist creation, set price alerts, and apply the scan across multiple asset classes. This approach transforms year-end analysis into actionable trading plans.

Understanding YTD High/Low Scans

Year-To-Date high/low scans identify symbols trading at their annual extremes on key dates like December 31st. The 2020 example used 253 bars representing trading days from January 1st to December 31st. Stocks like TSLA appeared bullish when closing at $705.67, while GILD signaled weakness at $56.56.

These scans filter noise from daily volatility by focusing on maximum price persistence. The Dow’s 2020 close at 30,606 demonstrated true yearly strength compared to SPY’s earlier peak. This methodology helps separate genuine trend leaders from temporary momentum plays.

Traders use YTD extremes to gauge institutional positioning and sector rotation. Symbols closing at annual highs often attract follow-through buying in January. Conversely, stocks like FAZ hitting $9.87 lows may face continued selling pressure.

Building the Scanner Code

The core script uses ThinkScript’s highest() and lowest() functions with 253-bar lookback. ‘YearHigh = Highest(high, 253)’ creates the reference point, while ‘close >= YearHigh’ triggers bullish signals. For bearish scans, ‘low <= YearLow’ identifies breakdown candidates like SPXU.

Liquidity filters are crucial – the tutorial uses weekly options availability. This reduced 261 initial results to 39 high-probability candidates. Testing with TSLA confirmed accurate detection of its $705.67 annual high.

The script’s simplicity allows easy modification for different timeframes. Changing 253 to 126 creates mid-year scans. Traders can add volume filters using ‘AggregationPeriod.WEEK’ to refine results.

Step-by-Step Implementation

Navigate to ThinkOrSwim’s Scan tab and select ‘Add Filter > Study > Custom’. Input: ‘plot Signal = high == Highest(high,253)’. Set aggregation to daily and time range to 1Y. Click scan to generate initial results.

Refine using liquidity filters – select ‘Weekly’ under ‘Stock > Optionable’. This trimmed 2020’s results from 261 to 39 stocks. Save results as ‘2021_Bullish’ watchlist for ongoing monitoring.

Verify scans with chart analysis – TSLA showed clear YTD high confirmation. For bearish scans, modify code to ‘low == Lowest(low,253)’. GILD’s $56.56 low provided model bearish validation.

Trading Strategies &amp; Applications

Bullish candidates like TSLA suit pullback strategies to Market Pulse lines. The tutorial suggests entries near $670 after its YTD high breakout. Bearish symbols like SDS work for breakdown plays below $25.50 with tight stops.

Integrate with Stock Volatility Box for automated alerts. Set notifications when TSLA breaches lower volatility bands at $685. This combines technical levels with institutional flow analysis.

Seasonal traders use December 31st signals for January Effect plays. 72% of 2020’s bullish candidates outperformed SPY by 15% in Q1 2021. Pair scans with TTM Squeeze for confirmation.

Advanced Customization Techniques

Modify bar count for non-calendar years using ‘GetYear()’ functions. Add secondary conditions like ‘volume > 1M’ to filter outliers. Create composite scans tracking both YTD high and RSI > 60.

Automate watchlist updates via ThinkOrSwim’s ‘Scan’ > ‘Save As Condition’. Schedule hourly rescans during market hours. Export symbols directly to Excel using CTRL+C/V for portfolio tracking.

Combine with Options Analytics for strategic positioning. TSLA’s YTD high correlated with 20% IV drop – ideal for covered calls. GILD’s low showed 150% IV spike, suggesting put spreads.

Common Pitfalls &amp; Solutions

Avoid incorrect bar counts – 253 days varies by exchange holidays. Verify with ‘AddChartBubbles’ plotting exact high dates. Mismatched counts caused 12% false signals in backtests.

Illiquid stocks create false positives – always use weekly options filter. The initial 261 results included 38 micro-caps under $500M market cap. Volume filters remove 89% of unreliable signals.

Don’t ignore sector context – 2020’s bearish list contained inverse ETFs like SDS. Analyze fundamentals before trading – GILD’s low reflected drug trial news, not pure technicals.

Best Practices &amp; Optimization

Run scans at 3:55 PM ET to catch closing prints. Update bar counts annually – 2021 required 252 trading days. Combine with ‘Compare to SPY’ column to spot relative strength.

Use multi-timeframe confirmation – check monthly charts for TSLA’s breakout. Set price alerts 2% below YTD highs for early entries. Backtest strategies show 18% average 90-day returns.

Maintain separate watchlists for bull/bear scenarios. The tutorial’s 2021 lists showed 24% divergence – bullish symbols gained 33% vs bearish 9% declines. Rebalance quarterly.

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