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Custom Thinkorswim Volume Indicator EVERY Trader Needs [FREE] - YouTube
Channel: Master the Market
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hey everyone thanks for checking out
this video my name is Travis I'm the
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creator of the master the market education
that you can find linked below in the description
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and I wanted to put together this quick
video to explain a custom thinkorswim
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volume indicator you can use and add to
your charts in thinkorswim that I think
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is very useful and the main reason for
that is because in my opinion thinkorswim
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is a great platform I mean it's one that
I've used for years for most of my
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technical analysis and charting but one
thing that I really think they lacked is
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actual volume stats volume information
which can be a huge part of trading in
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which is something that I use personally
for almost every single one of my trades
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so if you go ahead and zoom in on a
chart and hover over one of the
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candlesticks you can see up in the top
right corner up here it's going to tell
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you the volume for that specific handle
I mean you can do that on in any
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different time frame so right now wrong
5-minute chart but if we go to the daily
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chart as well I'm you can zoom in and go
ahead and hover over a candle and you
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can see on this day there were 37
million shares traded of this stock so
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that's pretty much the majority of what
they provide as far as volume
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information now there are actually a few
other ways you can add volume indicators
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and volume studies to your charts but
one thing that I really like to see is
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basically just the overall daily volume
for the stock and then I'd like to see
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how that current volume is comparing to
past volume and then I also like to see
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the average volume for that stock so all
of that is going to be provided in the
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custom thinkorswim volume indicator
which you can see down here that I'm
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going to share with you so basically
this indicator is going to tell you five
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main things all based around volume for
any stock that you're currently
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analyzing or trading on as long as you
haven't pulled up on your chart and the
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first of those is going to be the daily
average and this is going to tell you
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the average amount of volume or the
average amount of shares traded over the
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past 30 days believe it or not this is
actually a very important number because
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if a stock is trading for example just
10,000 shares on average per day that's
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a very illiquid stock and that's going
to be difficult for you to buy and sell
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at the prices that you want to buy and
sell that because there has to be
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somebody else on the other side of that
trade to actually buy or sell your share
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so if there's only 10,000 chairs being
traded on average on any given day and
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you're somebody trying to buy you know a
thousand or 2,000 shares at a time keep
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in mind that there has to be somebody
else to either sell those 2,000 shares
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to you or buy those 2,000 chairs from
you so in my opinion it's important to
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see a daily average of at least 100,000
shares if this is a stock that you're
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going to be buying into and potentially
holding for multiple days the next
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volume stat that you're going to see is
today's volume and that is just how many
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shares have been traded so far for the
day after that you're going to see
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today's percentage which is going to be
a comparison of how today's volume
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compares to the past 30 days so if we
take the example at the bottom you can
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see today's volume is about 55 million
shares just about and then the daily
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average is just about 15 million shares
so today because the stock is trading
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about 55 million shares and the daily
average is just 15 million shares the
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point today is about three hundred and
sixty seven percent what it usually is
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for this time of the day for this stock
and more often than not when there's
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high relative volume that also comes
with some kind of news or catalysts
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released by the company and then news
along with the extra volume is usually
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going to create a large amount of
volatility which is what we want to see
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when we are day trading stocks after
that we have the average 30 bars and
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this is just going to tell you the
average volume over the past 30 bars and
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that can be on any timeframe so the way
that that differs from the daily average
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is because we can be looking at the
average volume over the past 30 bars on
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the 5-minute chart meaning how many
shares the stock is trading on average
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for five minutes and that's but not
least it's going to tell you the volume
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for the current bar and again that can
be on any timeframe as well so in this
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case say for example we were looking at
the 5 minute chart and the current bars
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volume is at 172 thousand shares that
means that so far in the past 5 minutes
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the stock is traded 172 thousand shares
I mean the same would be true if this
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was the 15-minute chart that would just
mean that so far in the past 15 minutes
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the stock is traded 172 thousand shares
and there's a ton of things you can do
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with this information and it can really
help you with any of your trading
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regardless of the trading
strategy that you're using so now I just
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want to show you how you can actually
add this to your charts so you can go
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ahead and get started using it so once
you open up your thinkorswim platform
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and you have the chart pulled up that
you want to add this custom thinkorswim
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volume indicator to all you have to do
is go up to the studies on the top right
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and then go to edit studies
once the Edit Studies box actually pops
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up you're going to go ahead down here to
create click on create and then go ahead
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and delete the default that they have in
there now for the next step or you're
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going to have to do is copy and paste
the think script which you can find at
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the first link down below in the
description it's going to bring you over
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to this blog and basically my blog is
just explaining to you everything that
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we talked about within this video and if
you scroll all the way down to the
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bottom you're going to see the Finke
script which is what you want to copy
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and paste into the thinkorswim platform
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and that's going to be the actual study
itself so once you paste that in the
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only thing that you have to do after
that is give this study some kind of
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name so we'll call it custom volume and
then go down here and click on OK and go
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ahead and apply it to your charts after
you do that you're going to have these
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thinkorswim custom volume indicator down
here at the bottom of your charts and
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you can see that again
these last two here are going to be
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based on the time frame that your chart
is actually on so in this case were on
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the 5-minute chart and you can see that
on average in the past 35 minute candles
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or the past 35 minute bars this stock
has traded about 16,000 shares and if we
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were to change this now to the
one-minute chart you can see that the
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indicator is actually going to adjust to
the time for him on the chart and now
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we're down to about 3,000 shares in the
past 30 minutes broken up into
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one-minute bars so anyway I hope you
found this video helpful if you're
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someone like me that uses thinkorswim
and thinks that they can improve on some
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of the volume stats and the volume
indicators then I hope this is helpful
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and I hope that you go ahead and apply
this to your own charts but anyway
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thanks for watching if you enjoyed make
sure to give the video
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and subscribe to the channel so you
don't miss out on future videos and if
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you're interested in learning more about
day trading swing trading and even
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long-term investing all of that along
with exclusive market resources and
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access to our trading chat room with
over a thousand active traders can be
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found on my website maps of the market
which will be linked down below in the
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description thanks again for watching I
hope you enjoyed and good luck with your
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trading
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