A trader long term success will depend on their ability to eliminate the "BIG LOSS" when considering the five outcomes to a trade!
Initially my process focused specifically on channels and lines.
Then, I realized that a specific type of regression channel within ThinkOrSwim provided me with an easy to replicate process which gave me a trading edge. The channel type that I am referring to is the Raff Channel. Using 1 Standard Deviation for the main channel lines and 1.5 Standard Deviation for the channel extreme lines. This by itself, provides a huge opportunity to trade successfully once understood the working process.
Over time, I realized that there were opportunities within ThinkOrSwim to develop an indicator to assist me in making trading decisions and provide a greater trading edge.
It took me a couple of years of study to figure out pricing waves and ways to time the process of entry. While not perfect, it helped me trade but also there were times where it did not work so well. As I continued to study another year goes by and the idea of the SwingArms was developed in my mind. It wasn't until this year that I came up with the idea of the Buy / Sell Buckets and the SwingArm Indicator.
RAFF Regression Channels Using 1 and 1.5 Standard deviation for channel boundaries.
Below is an illustration of the regression channels plus blackFLAG FTS. It provides clear guidance to Enter / Exit a trade. Below is an example of a Swing Trade.
The Weekly Regression Channel does include internal lines as a guide. There seems to have been a change to TOS that the channels no longer keep the form they had before. Now the seem to expand on one side. I really do not need the channels to make desicions since the development of the SwingArms.
My charts have changed to black background to make it easier on the eye and reduce monitor glare. Also, I like the look of them better. It is just a matter of personal preference. In trading, not one size fits all. We all are different, diferent cultures, backgrounds, education, purpose, goals, financial situation, etc. All variables that will affect your trading style and process. So, take your time and figure out what makes you tick and figure it out.
My current charts look like these:
