Flag Formations Indicator ThinkorSwim TOS Script

The Flag Formation study helps identify occurrences of the well-known Flag pattern of certain shape on intra-day charts. The criteria of the flag shape that are said to improve the performance of the pattern were described by Markos Katsanos in his article “Detecting Flags in Intra-day Charts.” Those criteria form the base for the Intra-day Flag Formation strategy.

By default, the study searches for flags whose parameters conform to the following (all numbers are customizable,see the Input Parameters section): 

• The flag pole height is at least 5.5times the average true range (ATR) and its formation takes no longer than 23 bars;
• The flag itself is not wider than 2.5 times the ATR and its formation takes no longer than 15 bars;
• There is an uptrend before the flag formation and it persists for at least 70 bars;
• The ATR has changed by at least 5%during the flag formation.

Input Parameters

• max flag length  The maximum number of bars since the pole top.
• max flag height  The maximum flag width, expressed in ATRs.
• max pole length The maximum duration of the pole formation, in bars.
• min pole height   The minimum pole length (bottom-to-top),expressed in ATRs.
• up trend length   The minimum duration of the preceding up trend, in bars.
• min atr percent change        The minimum ATR percent change during the formation.

Works with ALL Futures, Forex Currency Pairs, and Stocks

Works with the Think Or Swim trading platform

Using this indicator you will never be on the wrong side of a trade again.