OPEN-SOURCE SCRIPT
TAPLOT SlingShot
Updated
Slingshot concept was created by Scot1andT
Below is HIS explanation of what SlingShot is and how to use it:
THE SLINGSHOT
Wouldn’t it be great if you could buy a powerful stock after a pullback just as the downward momentum stops and the stock begins going back up?
It was my goal to come up with a setup that did just that. After much experimentation, I came up with a setup that I call the Slingshot.
WHAT IS IT?
My Slingshot indicator is simply a 4EMA of the highs. Buy using the highs instead of the closing price, I was able to find stocks that were powerful enough to break the short term downward pressure. And, when the selling is done, the stocks start to run.
CHARACTERISTICS
First, there must be upward momentum. A pull back in a stock in a downtrend is merely an opportunity to sell into strength. That’s not what we want to trade. Ideally, we want to find a stock that has recently made a strong move. – often following an earnings gap.
LOOK FOR CONSOLIDATION
Tight trading ranges before the trigger are ideal for two reasons. It signals that the selling pressure is waning and perhaps, more importantly, it permits very tight stops.
MANAGING RISK
I typically place my stop at the low of the slingshot day. Or at most, the bottom of the consolidation period. Stops should be tight, much tighter than a breakout. The advantage of the setup is that it provides a low risk entry with a tight stop. If it works, I will have ample room to avoid the crowded breakouts.
Below is HIS explanation of what SlingShot is and how to use it:
THE SLINGSHOT
Wouldn’t it be great if you could buy a powerful stock after a pullback just as the downward momentum stops and the stock begins going back up?
It was my goal to come up with a setup that did just that. After much experimentation, I came up with a setup that I call the Slingshot.
WHAT IS IT?
My Slingshot indicator is simply a 4EMA of the highs. Buy using the highs instead of the closing price, I was able to find stocks that were powerful enough to break the short term downward pressure. And, when the selling is done, the stocks start to run.
CHARACTERISTICS
First, there must be upward momentum. A pull back in a stock in a downtrend is merely an opportunity to sell into strength. That’s not what we want to trade. Ideally, we want to find a stock that has recently made a strong move. – often following an earnings gap.
LOOK FOR CONSOLIDATION
Tight trading ranges before the trigger are ideal for two reasons. It signals that the selling pressure is waning and perhaps, more importantly, it permits very tight stops.
MANAGING RISK
I typically place my stop at the low of the slingshot day. Or at most, the bottom of the consolidation period. Stops should be tight, much tighter than a breakout. The advantage of the setup is that it provides a low risk entry with a tight stop. If it works, I will have ample room to avoid the crowded breakouts.
Release Notes
Making both Paintbar and Shape print under price ON by default. Turn off the one you don't want from indicator setting.Release Notes
Per request, added Alert Condition when Sling Shot triggers.Right click on indicator and choose add alert. Then under Condition choose Slingshot.
This is my first implementation of alerts on Tradingview so please report any issues in the comments below.
Thank you!
Release Notes
Giving folks ability to hide EMA line if they want to keep their charts clean and only show Sling Shot signal without the line.Open indicator setting and uncheck "Show EMA Line?" to hide EMA line from the chart.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
✔ Momentum & Breakout Trader Since 2006 | Influenced by Mark Minervini VCP Trading Style & William O'Neil CANSLIM 📈
✔ Follow me on Twitter @taplot - twitter.com/TaPlot
✔ YouTube channel youtube.com/@taplot
✔ Follow me on Twitter @taplot - twitter.com/TaPlot
✔ YouTube channel youtube.com/@taplot
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