So one of the most common questions on this channel is how it is that I have my different studies and indicators set up on thinkorswim. So with that in mind, my goal is that by the end of this video, you will have a complete understanding of how I have them set up as well as how to set them up yourselves. now. I should also mention that just because I have it set up in a certain way doesn't necessarily mean you have to set it up that way.

it's just the way that I'd specifically use it and it's something that I have adjusted over time as my experience has progressed. So make sure to mess around with them a little bit to see. You know how different specifications change the outcome and how efficient that makes you as a trader within the stock market. and of course all I ask from you in return for this video is that you hit that beautiful and ravishing like button.

And also don't forget to subscribe if you see value in the following video. Ok so before we get started, I do want to invite you to check out our free Facebook group Zip Trader Circle. This is a group where I post all of our nightly watch lists with all the different tickers that I see value in for the following day. We have things such as: Volatility plays, after-hours runners, the runners that basically they run after hours.

It's beautiful. Notable earnings for the following day. Different patterns that I see. These are the basically the opportunities that I see.

They come up and they give you sort of an example of what to look for. But of course these aren't just recommendations to buy, these are just recommendations to watch as they have a high likelihood of price action to trade off of based on our previous experience and you know previous patterns and another great opportunity for you is the Discord Chat. I'll put the link in the description below. For some reason these links always expire even though I set them to never expire.

But in any case, the link will be in the description below for this video. but this is a great place to kind of get your live updates on what's happening in the market. We have a bunch of different categories, so whatever it is that you're trading, this Discord Chat is a good opportunity. I Also post nightly watch lists in the zipless, the zip list in the Charley Corner, and of course the Charley Corner is a beautiful place.

Okay, so now opening the platform we can see a bunch of different beautiful indicators for us to choose from. We have our long term SMA line, our blue SMA ax, and our volume indicator our RSI which is you know, one of our favorite indicators because we can see when it's oversold and overbought and we have our MACD Now the SMA lines are very important and the thing is that I think this is where a lot of people get goofed up. Now you may notice that we do have two different SMA lines. These are both the same indicator, but they both have completely different purposes.

So our short-term SMA line is for measuring price strength and caching minute by minute reversals, whereas the long-term SMA line misses for caching longer-term reversals. This is how you measure the direction of the stock when we are trading below the long-term SMA line. That means that we have an overall downward direction for the stock and when we are trading above the long-term SMA line. That means that we have an overall upward direction for the stock.

Now, the reason this is important is because we can actually measure the strength of the direction by looking at the real estate between the long-term SMA line and the price action. And this actually works in a similar way for the short-term SMA line. If we were looking at the price action, we could see that just by buying here at Confirmation over our short-term SMA line as well as the confirmation of a reversal over our long-term SMA line. we could have simply just rode the price action up and measured the actual price strength over our SMA line.

As it gets farther away, that means that it's strong. We see that we're closing this gap between the price action and the SMA line that shows price weakening. But then you know it helped that it use that as support. It bounced off and then it continued up and then it started to decrease again.

But in any case, this allows us to measure the price strength over the SMA line intraday and the long trim. SMA allows us to measure the direction of the stock and both of those are extremely important to have later on. I'll talk about how I have the validation line set up I Don't always configure it for the videos because it gets a little bit messy. but for actual trading purposes I Do have it configured because of the simple fact that it allows us to find exit points.

Validation is when you want to exit a stock. So if you want to add or edit studies, you just go to this studies button over here. you push edit studies and then you can allocate the studies that you'd like on to whichever part of the chart that you'd like them to be on. Now I Already have these set up, but let's just do it again daily.

SMA Double click daily a sum and then you put it on wherever you want it to be. Looks like it just added it up here. So this is the one that we just added. So let's configure this.

We're going to say this is the short-term SMA line. So for these short-term SMA line, we're going to keep this on the default which is closed. The aggregation period is going to be set to 1 minute, the length is going to be set to 9. You're also going to want to configure how it's drawn I Think this is kind of a messy way to draw it I like to have it set to this and then I like the color to be this light bluish color.

You could set it to whatever under the green earth that you'd like it to be. There's no barking chickens with this. you just said it how you want it to be or whatever works visually for you. For me, if you have boring colors, it just makes the whole process boring.

And when you're looking at charts, you don't want it to be boring. You want to see things so you can add that and you push. Okay, I already have that. So I'm just going to delete the one that I just did.

but in any case, that's how it's set up. Now the long term SMA line is you do the same thing you use the daily SMA function. You double click that and then you go over here close. That's the same.

Aggregation period is going to be set to one minute and then the length. This is where the big difference comes. The length is going to be set to 180 and the length is basically just the amount of candlesticks or the amount of bars that it takes into consideration when calculating. And you can actually see the definition of what each of these things mean just by clicking this little Pandy arrow button.

And for drawing I Like to do the same drawing with the smoothed out line and then for color I have the color easy set to red and that kind of works well for me just because I think red. That's sort of when the overall trend is not reversed like this is a red line where the direction of the stock has now changed. So I like to set that to red and we could see that that just configured. But because I already had it I'm just going to delete what I just did and then the RSI is the same thing.

The RSI is actually a lot easier. You just have to push RSI and I just have it set to default. Then you just drag it to the lower which is this bar over here and then that'll that'll add your RSI But because I already have it, no need to do that and you think I don't think I have it configure to anything specifically. Maybe I have the color set a little bit differently, but this is basically how is it configured.

By the way, if you're on Weibo, this people does the same exact thing where they start you with an RSI of 14. The 14 are first and the length. on the overbought and oversold categories. those explain the level at which the RSI renders it overbought and oversold, and that's where it places these lines as you can see the two yellow lines.

some people set the more conservatively. some people set them a little bit more aggressively. I've seen 80 in 40s or I've seen 80s in 20s and I think that's a personal preference. But generally speaking, I consider at 70 40 and that's what's worked for me.

If that's not something that you see value in, then don't do it. But yeah, that's how I have it set and then we have this set of so colors. Everything's good. Okay, and then the MACD is also set to default.

MACD You just drag it up to where you want and then you set that as so. um, what other indicators do I have I Think that's it. The volume should be there automatically. Yeah, the volume should be there automatically.

I don't think there is anything else that I have set up as far as I know. But in any case, once you do that, you should have all the indicators set up and ready for your disposal. Some people will go and say oh well, why don't the SMA lines show on this chart? Why don't they show on any of the other charts And that's because your aggregation period is set in a way that you know it doesn't show that and all these are just support and resistance lines there I Put them there because I was looking at the comeback pattern for the stock, which it's so tragically broke. But in any case, if you'd like to have SMA lines that you go on different aggregation periods that are shown in different periods, you can just add more of them.

Say if I want one for the five day five minute chart I can just go to daily SMA Go over here, configure the aggregation period to five minutes and it will be used to smooth that line because the other one is just god-awful and then did it it adieu. Yeah, this should do it. Yeah, now here we have an estimated line for the five minute five-day and we can set the link differently if we have a different purpose for it. and a lot of people have found value in setting different lengths for different reasons.

For swing trades, you could put more preference towards a longer term reversal line or a shorter term reversal line for confirmations. It really depends on your strategy in what you're employing, but I can only tell you really what's worked for me and just how I do it. So I do want to show you the validation line as well. The validation line is just set by going to daily.

Yes! And they went over here And what do we have it? So yes, so Price was open. So so with this one, in order to make it more reactive, we're setting this a little bit differently. so for price, we're setting this to open for aggregation period. What do we said? Hi Radiation Jiri two for aggregation.

period. We set it to one minute as well. because this is for our day trading validation line for length, we're setting it to two. The reason that we set it to two is because that makes it more reactive.

A lot of people use the EMA line which is another option, but for me I like to do the Assam a line because it measures it equally and if we set it to two, it makes it very very reactive. and then we could also set the line as so. and for my validation lines what I usually do in my videos as I put it to red just to make it stand out. but it can flix with my longer-term reversal line.

So now what I do is I'm going to set it to yellow. This is an ugly yellow I Don't know why it's not bright, but it's an ugly yellow. Let's do orange for this video. Push it okay and we'll go back to our one-day 1-minute chart and Boom now we have a validation line! So anyways, this is how I have thinkorswim set up and this is how you can set it up just by simply going to studies and then edit studies and then searching for the study that you want.

If you are somebody who wants to use the exponential moving average, the EMA you can just type in EMA You can just type in exponential moving average exponential and then this is how you basically add it and this is the same thing as the EMA. It's just you know it's in a different order because thinkorswim hasn't set up that way and I don't use this so I don't want to go through the configuration since I don't have any configurations for it. But yeah, that basically adds the exponential moving average for you and I know that's a big one that a lot of you folks use for we both. For whatever platform you're using, the specifications are essentially the same.

There's nothing really different to them, it's just sometimes the setup and sometimes the names are a little bit different. But you know the simple moving average on Weibo is just considered the moving average and a lot of different other platforms call it different things. But at the Simple Moving average is the one what it's called on faker Swim. So make sure to know that when you're setting up the platform and I do want to leave you with one more little tip that a lot of people don't know when they're watching videos of different like stock youtubers or whatever they're like.

Oh how does he have it set up? Well if you actually look in the top corner up here you could see how like the main whoops, you can see how the main the main indicators are set up. You'd say oh well. the daily s may it set to close the minute chart 180 zero and then no. All right.

So that's basically how it has it set up. We could just literally look up here and see how they're configured and these are all in order. So when you actually go to studies if you just compare and contrast with what it says, right? So if we're looking over here, close minute nine zero and then no clothes, minute nine zero and then no so you can clearly see how it's set up and you can transfer that to whatever other platform you're using and also make sure to toy around with these. There's nothing set in stone.

This is how I use it and I have adjusted this over time and will continue to adjust it as I see fit because there's always different strategies and different formulas that you find that works better as you get a little bit more experience in the niche. and honestly with different market conditions, certain different configurations would work better because for instance, I know that we use the for instance you know that we use our let me get rid of one of our SMA lines because it's getting a little bit too crazy. We're getting rid of the validation line. For instance, you know that we like to use the short term SMA line as a point for confirmation the first candlestick that holds above our short-term SMA line.

That is our confirmation point. So with that in mind, if it's a different sort of market condition, we may want to set a more conservative SMA line just to sort of be a little bit more cautious first, as if it's a market where everything's just going up substantially. Maybe we're going to set it a little less aggressive and to be more reactive, for example. So so these are by no means set in stone.

But but I do think that this is a very solid configuration just in my experience. regardless of the market condition or the direction, I should say the overall market direction of the day, it seems like this is sort of like that conservative sweet spot in the middle and it's something that I found to be super valuable. So anyways, folks, I hope this video is helpful if you have any questions. feel free to comment below or reach out to us on the zip trailer circle.

Facebook Group have a great day folks and I'll see you in the next video.