Jack Schwager Indicators in TradeShark

Market Wizards author, Jack Schwager, has released 4 proprietary indicators available exclusively in TradeShark. These indicators are geared towards helping traders tune in to the strongest market trends but can also serve as filters for trades.

In this video we cover how to use the each of the 4 Jack Schwager indicators in TradeShark .

Trend Weight Indicator

The Trend Weight (TW) indicator is designed to capture major trends in the market and can also be used as a filter to determine which side of a market to trade from. The value of the indicator reflects the strength of the trend and can range between -100 (most bearish) to +100 (most bullish). Users can specify threshold levels which can be used to generate buy and sell signals. See more.

Overbought/Oversold Indicator

The Overbought/Oversold (OBOS) indicator is a counter-trend measure, which becomes increasingly positive as an uptrend progresses and increasingly negative as a downtrend progresses. The indicator has a range between -100 and +100. Extreme values in the OBOS can be viewed as an indication that the trend may be overextended and prone to reversal which can be used as signals to employ a sensitive exit condition. The OBOS can also be used as a trend signal in that shifts from negative to low positive readings tend to lead to upside extensions, and shifts from positive to low negative readings tend to lead to downside extensions. See more.

Directional Weight Indicator

The Directional Weight (DW) indicator combines the TW and OBOS into a single composite indicator, which can range between -100 and +100. The typical pattern for a major uptrend will be that, initially, the DW will increase as the trend develops, reflecting an increasing TW and a little changed OBOS. Subsequently, as the trend extends further, the DW will begin to decline, as the TW will be near maximum readings, while the OBOS increases with the extension of the uptrend. It is not uncommon for the DW to retrace back to near zero by the time the market is at a top. The pattern for a major downtrend would be analogous. Similar to the TW, user-specified threshold levels for the DW can be used to generate buy and sell signals, and the DW can also be used as a filter to determine which side of a market to trade from. See more.

Dual Trend Indicator

The Dual Trend (DT) indicator combines the Trend Weight (TW) with the TradeShark Long Trend Difference (LTD) indicator. The DT is inherently diversified, as the TW is a long-term indicator, while the LTD is a much shorter-term indicator. See more.

The DT can be set in one of two modes:

  • Single Condition—A bullish reading in one indicator (with the other neutral) is sufficient for a trade signal.
  • Dual Condition—Both indicators need to be in a bullish mode to signal a long position, and both need to be in bearish mode to signal a short position.

For more information on purchasing the Jack Schwager indicators in TradeShark please give us a call at 1-800-732-5407.

A recent update to TradeShark now allows users to add these indicators to their Intelliscan filters. Read more about that update here.


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