Let's look at some of the choices you have to usethe Point and Figure Chart on Thinkorswim. Some online users have tried to implement the feature using their own code to varying success. There is also a paid version for $199.
Thinkorswim Point and Figure Chart Free: UseThinkScript code
A user on the usethinkscript fourm used the paid funwithThinkScript add-on, see below, as an inspiration for this code.
Remember it's free, and it does seem to be a bit rough around edges. The code could certainly be improved but the creator added comments and with some motivation a fully working version could be created.
Thinkorswim Point and Figure Chart Free: Futures.io code
Sadly this unfinished code is even older than the usethinkscript code, it is from August 2010.
A couple of users tried to make some improvements to it up to January 2011 and then the thread went dead with some intermittent posts in June 2014, April 2017 and a final plea in May 2020.
Again there is the basis for a working version if people have the skills and motivation.
Thinkorswim Point and Figure Chart Paid: funwithThinkScript
At the moment your best option is this a paid add-on that has aonce-off fee of $199.The author of the script claims to have seen requests for this chart going back over 10 years.
Some of the features that traders may find useful include:
- The box size is based on Average True Range (ATR) meaning that the box size over a smaller time frame, let's say 1 minute or 5 minutes will be smaller than a longer time frame such as the daily.
- Percentage Box Scaling where the size of the box is a percentage of the stock price.
- User-definied Box Scaling where a larger box will have more filtered price movements and fewer reversals. A smaller box size means fewer filtered price movements and more reversals.
No blog content has been added to the site since October 2016 so I don't know how uptodate this add-on is.
Here is the indicator in action using Apple AAPL:
They appear to have an impressive total of 27 paid scripts for Thinkorswim ranging in price from $125 for vbox, which appears to be their first script, with most priced at $199.
It seems their most recent products are more expensive with the Harmonic Collection costing $795 and the Cup and Handle pattern add-on costing $250.
What is a Point and Figure Chart?
A Point and Figure Chart is a technical charting toolthat allows investors to identify potential support and resistance levels.
The chart is created by plotting a series of Xs and Os, with Xs representing periods of rising prices and Os representing periods of falling prices.
Much online literature about Point and Figure Charts refer to this post on Stockpost.
By identifying these patterns, investors can make informed decisions about when to buy or sell a security.
The chart is created by plotting price movements on a graph, with the X-axis representing time and the Y-axis representing price.
Prices are plotted as dots, and when these dots form a column, it indicates a trend. In addition, horizontal lines can be used to identify support and resistance levels.
Overcoming the Common Challenges in Using Point and Figure Charts
Using a Point and Figure Chart on Thinkorswim can be an excellent tool for gaining an edge in the stock market. However, a few challenges commonly arise when using this charting method.
First, it can be challenging to determine the suitable price range to use when constructing the chart.
Second, the P&F chart only provides a limited amount of information, so it's essential to supplement it with other technical indicators.
Finally, P&F chartscan be slow to react to changes in the market, so it's important to use them in conjunction with other charting methods.
By understanding these challenges and taking steps to overcome them, you'll be well on your way to becoming a successful trader.
Conclusion
There seems to be demand out there for a Point and Figure Chart on Thinkorswim, judging by user comments online. Right now your best bet is to spend $199 on the funwithThinkScript add-on.
Sadly there doesn't appear to be any fully functional script that you can add yourself.
If you do go the paid route then leave your thought on this add-on in the comments!
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