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Page: The blackFLAG© SwingArm & Code

Succesful traders who use technical analysis to trade, invest years in studying charts and patterns to eventually provide a true trading edge.

A trader must learn to interpret

  • momentum,

  • volume,

  • trends,

  • support and resistance levels,

  • value area zones (where large buyers and sellers are located)

  • money management

  • and psychological response to market moves.

Having a visual representation of many of the above requirements needed by a successful trader in one study provides a huge help in someone’s ability to easily and quickly understand price action, trend, support, resistance, and most of all value area zones to buy or sell from.

For these reasons, the SwingArm was developed.

The SwingArm is a visual / color-coded indicator for ThinkOrSwim. It provides an easy way to find value area zones to identify areas of interest where one can find buyers or sellers.  The SwingArm is also much easier to read and understand than the Volume Profile Study.

The indicator came about after realizing that I kept constantly studying Fibonacci retracements and drawing Fibonacci extensions and trying to understand their relationship to the average true range of price. This was something I did every day and realized that I needed to come up with a study that did this for me with ease. The integration of the Fibonacci analysis and the proper ATR relationship created the SwingArm.

I found the study so valuable that I felt it was important to share it with anyone interested in learning about price action. Instead of attempting to sell the study as many told me to do, I found a group of passionate traders and shared it with them. I invested a significant amount of time teaching traders how to use it and published several videos about it on my youtube channel.

The blackFLAG© Futures Trading System provides a clear trading plan to implement improving a trader’s probability of success. This does not mean that it is easy, it does require study, patience, long-term commitment, and effort to develop the much-needed experience to enter and exit a trade.

As of February 7, 2021, the SwingArm is available for ThinkOrSwim with a Single and Multi Timeframe Study. Thanks to a few passionate programmers and their support, it has been also converted to Trading View, Ninja Trader, and Tradovate.

IMPORTANT TERMS TO KNOW ABOUT THE SWINGARM INDICATOR STUDY

BREAKUP / BREAKDOWN

BUY / SELL BUCKET

VALUE AREA ZONES

SLINGSHOT

The visual representation of when a trend shifts up or down.

An actual bucket that is displayed by the swingarm showing probable areas of backtesting after a breakup or breakdown of a trend.

The SwingArm has value area zones highlighted by color.  Three levels of green for buyers and three levels of red for sellers.  These areas are known as areas where buying or selling action occurs with a high probability of accuracy.

Price moves by energy.  That energy is provided by buyers or sellers on a regular basis.  Outside catalysts such as news events cause buyers to buy or sell.  The impulse created by the catalyst is measured by the SwingArm.  This impulse causes the break of the swingarm and creates a bucket providing the value area zones.  

For example, when a SwingArm breaks up it comes a point in which the up move stops and turns over.  The turning point becomes a pivot anchor and prices come down into the SwingArm bucket zones.  Depending on the time of day, the price may come to zone 2, 3, or 4.  The lower the zone the higher the slingshot energy created to push price backup.  The higher the timeframe, the higher the energy of the Slingshot created.

NESTED SWINGARMS

SWINGARM PAIR

SWINGARM SQUEEZE

SWINGARM INTERNALS AND EXTERNALS

SwingArms are nested when trending in the same direction as a group.  For example, a 10-minute uptrending (bullish) swingarm is nested within a 1-hour uptrending (bullish) swingarm.  This nesting process can occur in multiple timeframes then the price is in a trend.
SwingArms work in teams.  When price is trending, all teams are pushing in the same direction.  When the price is not in a major trend, SwingArms will work in pairs.  The most current large timeframe that breaks becomes one of the pair.  The next timeframe would be the next available in the sequence.  For example, in an uptrend, if the 8-hour swingarm breaks down, its pair partner below in the timeframe sequence is the next large time frame below, the daily SwingArm.

The best way to see a trading range is to use a single timeframe in conjunction with the multi-timeframe study applied to the same chart.  One may choose to include a couple of multi-timeframe studies to show adjacent potential support/resistance levels provided by the value area zones.

A SwingArm squeeze occurs when two or more swingarms are moving against each other.  
SwingArm externals are meant to identify the two largest timeframes in a squeeze, meaning that price is moving within them.  As an example, the price may go to zone 4 of the 8-hour timeframe, reject and turn over to then attempt to go visit the zones of the daily chart.  
Any lower timeframe within the external timeframes, become internal swingarms.
As price moves from the extremes of the externals, the internal swingarms are broken on the way to backtest the active large timeframe pair.

SWINGARM PAIRS ( Extremes or Internal timeframes )

2 Minutes

3 Minutes

5 Minutes

10 Minutes

15 Minutes

30 Minutes

1 Hour

2 Hours

4 Hours

8 Hours

Daily

2-Day

3-Day

4-Day

Week

Month

Quarter

Year

Pairs can be created in any order.  It all depends on what timeframe is the most recent breakup or breakdown.  

For example, in a major uptrend, the last broken swingarm is 30 minutes. Below it, the 1 hour is giving support.  This would be the next timeframe of the pair.  Between the two, the trading range is created until broken.  Swingarms of lower timeframes within the 30 and 1 hour become internal swingarms and are likely to break as price attempts to backtest the selling bucket of the 30 minutes to then go back to test the support of the 1 hour.  

Strong BUYING OR SELLING pressure when present can change the normal behavior of a swingarm zone. 

This type of pressure change usually happens during news events or session open hours.

Nested SwingArms provide powerful energy to price.

the effect of nested swingarms on price
Bounce from multiple swingarm zones including 2 - Day Zones
Rejecting 8 Hr Zone 3

Pool Table / Trading Range and Pairs

A trading range is created between pairs and swingarms provide a visual way to see Resistance and Support value area zones.  

SwingArms show 3 zones.  #2, #3 and #4 zones.  Zone 4 has the most value and energy of potential bounce/rejection.

Price moves in cycles.  Those cycles can be viewed by timeframe with a SwingArm.  The SwingArm provides an incredibly easy-to-read view of price action.  The primary objective of a trader is to determine where the pool table is and trade it from zone to zone.  

Getting the SwingArm code

THINKORSWIM

TRADING VIEW

NINJA TRADER

TRADOVATE

Single and MTF SwingArms / https://tos.mx/BCbTUxO

Available on Trading View as a Study.   Search for it.

SwingArm ATR Trend Indicator by vsnfnd

Link

As you learn to trade and either pick someone’s style or develop your own, document your process.
Keep a journal and take notes daily. Review constantly and improve to avoid mistakes made in the past.
FYI (easier said than done)

The goals of the blackFLAG Futures Trading System are pretty clear. To provide a path forward to anyone looking to trade for a living. Especially those with the interest in providing a better life for their families but most importantly to share the knowledge with others and provide them the same opportunity to succeed while Paying It Forward.

 

How Trading With blackFLAG© FTS can have a positive impact!

Easily see setups and possible opportunities including:

The blackFLAG© Futures Trading System

assists the trader with charts, trends, possible trading scenarios, advanced notice of possible moves, expected entries, trade management, and take profit targets to be considered.

Trading the Markets

Trading the futures market can be difficult, costly, and even painful. Poor trading can cause sickness, divorce, loss of friendships, and even more.  The blackFLAG© Futures Trading System is here to make trading life easier and profitable.