The ST Top Hat Indicator is designed to show points in time where price has made it to an exhaustion point and is ready to make a turn. Getting this tool set up and clearly visible is possible with just a few quick clicks.
This article will walk you though configuring the ST Top Hat Indicator for each of the platforms we are currently supporting.
Configuring the ST Top Hat Indicator in ThinkorSwim
Follow the general guidelines for installing an indicator in TOS.
The default settings for the Top Hats are configured to generate signals on a confluence of different time frames.
The Top Hat indicator is ready to use right away, but the settings can be changed to shorter time frames to generate more signals.
Configuring the ST Top Indicator in Tradestation
Applying the indicator to your chart: Adding Daily, Weekly and Monthly background data.
Once you have completed the install using the Import Wizard, you are now ready to add the indicator to your charts.
First you will need to set up your background data on your charts in order for the indicator to properly display.
To do this you will need to add a couple streams of background symbol data.
Right click on the background of the chart and select Insert Symbol...
Be sure the box for "Prompt for format" is checked, then click Plot
Under "Settings" select Daily, and make sure it is set to 10 years back.
Then under the "Scaling" tab, you'll need to set the Sub-graph: to Hidden.
Finally click OK.
That takes care of one of the time frames. You will need to do this again for Weekly and Monthly so the indicator will appear on the chart.
So again, right click, select Insert Symbol... check the box for Prompt for format and set the Interval to Weekly with 10 years back and then once more for Monthly with 20 years back. Remember to change the Sub-graph to Hidden under Scaling for each.
Once you have ALL THREE (Daily, Weekly, Monthly) of the background symbols set up you can apply the indicator to your chart.
Right click on the chart and select Insert Analysis Technique...
Select the ST Top Hat Indicator and add it to your chart and you should be all set.
About - Top Hat Indicator
Top Hat Scan in Thinkorswim (TOS)