Using Studies and Strategies

The thinkorswim® platform provides hundreds of predefined technical indicators and a built-in study editor, allowing you to create your own. There are two types of technical indicators in thinkorswim: studies and strategies (excluding the multitude of predefined patterns, described in a separate section).

Studies are technical indicators that calculate certain values for each bar on the chart. Strategies, on the other hand, also provide historical trade signals: time and price points on the chart where the specified price-based condition was met. Strategies can also be back-tested; you can view a report that calculates the hypothetical profit/loss values based on the signals generated by the strategy, as if they were real buy and sell orders.

Operations with Studies and Strategies

1. To add studies or strategies, click the Studies  button and select from the following options: 

• Click Quick study or Add Study to browse available studies/strategies and add them to the chart area. 
• Click Edit studies to access advanced customization options. 

2. If you’ve selected Edit studies, the Edit Studies and Strategies window will open. This window is divided into three tabs: 

• Studies. Select, create, or import studies. 
• Strategies. Select, create, or import strategies. 
• Sets. Add available studies and strategies to a set. By default, this section is empty.  

3. To add studies and strategies, use one of the following options: 

• Double-click a study or strategy. 
• Select a study or strategy and click Add selected. Hold Ctrl to select multiple items.

Selected items will appear in the Added studies and strategies section. Note that thinkorswim® automatically assigns subgraphs to the selected items; however, they can be moved (see the Arrangement and Superimposition section).

4. To delete a study or strategy: 

1. Select Edit studies to open the Edit Studies and Strategies window. 
2. Access Added studies and strategies. 
3. Mouse over the item you want to remove and click . 

To remove all studies and strategies from the list, click Remove all.

5. To edit input parameters, plots, and visibility of a study or a strategy, click . For more information on configuration options, see Studies Setup and Strategies Setup.

6. To create new studies and strategies: 

1. Select Edit studies to open the Edit Studies and Strategies window. 
2. Select the Studies tab to create a custom study; select the Strategies tab to create a custom strategy.
3. Click the Create button to open the thinkScript Editor window.

Build custom studies and strategies with thinkScript. Note that you can also create and edit studies in the thinkScript IDE under the Tools tab. 

7. To import custom studies and strategies click Import, navigate to the file location, select the required file, and click Open.

Note that only thinkScript files (*.ts) are supported.

8. To edit existing studies and strategies, right-click an item, select Duplicate, then edit and rename it. Click OK to add your custom item to the list of available studies and strategies.

9. To add studies and strategies to a set, click Save as set, name it, and Save. Access and apply saved sets in the Sets tab.

Arrangement and Superimposition

After adding all desired studies to a chart, they are automatically distributed between subgraphs (Price, Volume, or Lower) based on the values they produce. However, you can change the subgraph where the study is displayed or display multiple studies on a single subgraph (superimposition).

To display a study on a different subgraph, use one of the following options: 

• Click the up and down arrows on the study pane to move the study one level up or down, respectively. 
• Drag and drop the pane onto any available subgraph box.

To superimpose several studies, drag and drop their panes onto a single subgraph. Note that in this case, thinkorswim® will automatically enable percentage mode, causing all studies to display their values on the percentage scale. Consider using the Left Axis feature to display the values of a specific study on an independent scale.

Once you finish your customizations: 

• Select Apply to see your configurations without closing the Edit Studies and Strategies window. 
• Select OK to save your configurations and exit the Edit Studies and Strategies window.
• Select Cancel to discard your configurations and exit the Edit Studies and Strategies window. 

Note that you can also hide any of the added studies and strategies directly on the chart. To do so, right-click on a study plot or a strategy simulated order and choose Hide study <name>… or Hide strategy <name >… To unhide, go to that study’s or strategy’s Customizing dialog and click Show study in the Options area.