Classic Patterns

On this page you will find information on how to search for classic patterns in thinkorswim Charts. General information and terms are explained in the Introduction. To learn how to use classic patterns as scan filters in Stock Hacker, see Stock Hacker.

1. Click the Patterns button above the chart and choose Select patterns... The Select Patterns dialog window will appear.

2. On the Classic tab, select the patterns you would like to search for. To add more than one pattern at a time, hold down the Ctrl button while selecting your search patterns. Click Add selected.

You can also click Add all so that the system will search for every known pattern.

All chosen patterns will be displayed on the list to the right.

3. To remove a pattern from the list, click the # to the right of the pattern name, or right-click and select Remove. To remove all patterns , click Remove all.

4. To customize a pattern, mouse over the pattern pane and click the " Settings button. The Settings dialog will appear.

5. Use the Parameters tab to customize the following:

Pattern length. Specify the lower and the upper limits (in bars) of the time periods over which the pattern needs to be identified.
Direction. Specify the direction of the anticipated trend after pattern completion: bullish, bearish, or both.
Trend. Specify whether the pattern should continue or reverse the preceding trend.
Breakout. Specify whether you are looking for a breakout that is already completed or emerging.

6. Use the sliders on the Sensitivity tab to customize sensitivity parameters. Each parameter is measured on a scale from 0 to 5.

Initial trend. Defines the strength of the preceding trend.
Breakout strength. Defines the minimum relative amount of price rise or decline at the breakout point.
Volume increase. Defines the minimum relative volume rise at the breakout point.
Uniformity. Defines how evenly tops and bottoms need to be spaced within the pattern.
Clarity. Defines the acceptable level of "noise" in price action (0 for very noisy, 5 for very clear). Noisy price action appears as having too many spikes (though the reversal points are still recognizable).

To adjust all five settings simultaneously, deselect the Fine-tune checkbox and move the Overall signal strength slider.

7. On the Display tab, you can:

Show predicted range. Specify whether the expected range should be shown always, never, or on mouse hover only.
Specify colors for pattern trendlines and bullish and bearish predicted range areas.

8. All specified parameters can be set as default. Click the Set as default button to save the configurations for the specified pattern. When the pattern is re-added, the default configuration will be automatically applied.
Click the Reset button to restore all parameters to their original default values.

9. Use the split button below to save your changes:

Click Apply to save the parameters for the selected pattern only.
Click Apply to all to save the parameters for all patterns in the Displayed patterns list.

10. To finish your customizations, click OK. The system will start searching for all chosen patterns right away.

11. When the breakout is complete, the system calculates the expected price range. This range is calculated using a proprietary algorithm, individually developed for each pattern. The expected range is not calculated for patterns with emerging breakouts.

Disclosures

The information presented in this guide is for educational and informational purposes only. Not investment advice, or a recommendation of any specific security, strategy, or account type.

Past performance of a security or strategy does not guarantee future results or success.

Market volatility, volume and system availability may delay account access and trade executions.

While this manual discusses technical analysis, other approaches, including fundamental analysis, may assert very different views. Technical analysis is not recommended as a sole means of investment research.