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Advanced Cumulative Trend
Diupdate
This is advanced version of Cumulative trend Indicator. The "Advanced Cumulative Trend" indicator calculates the strength and direction of a market trend by incorporating volume and volatility adjusted price changes. It uses various time frames to compute intermediate metrics such as price change, intraday volatility, and volume adjustments. Traders can customize the indicator by selecting which calculations to include in the average, allowing for personalized trend analysis. The indicator then derives the cumulative sum of the average volume and volatility adjusted price change to evaluate the overall trend direction. Additionally, users have the flexibility to toggle between two visualization options: the ROC histogram and the average cumulative sum for trend analysis. They can choose to display either the ROC histogram or the average cumulative sum (trend) plot separately, based on their preference or focus. providing valuable insights into trend momentum and potential reversals. (DO NOT HAVE BOTH ON SAME PLOT IT MAKES VISULIZATION HARD)
The primary calculation remains the same but it calculates the volume and volatility adjusted price on three different time frames and Users can customize the indicator by selecting which calculations (time frame) to include in the average," it means that the code allows traders or analysts to have control over which specific calculations are used to compute the average volume and volatility adjusted price change. The indicator offers flexibility in choosing the underlying data points and time frames that contribute to the final trend analysis.
In the code, this customization is achieved through the use of three input options: useCalculation1, useCalculation2, and useCalculation3. Each of these options corresponds to a specific set of volume and volatility adjusted price change calculations with different time frames.
For example, if a user wants to include calculations based on a shorter time frame, they can enable useCalculation1. If they prefer calculations based on a longer time frame, they can enable useCalculation3. If they don't want to include a particular calculation in the average, they can simply disable the corresponding option.
By selecting or deselecting these options, users can tailor the indicator to their trading preferences and strategies. This flexibility allows them to experiment with different combinations of calculations to gain deeper insights into the trend's behavior across various time frames. Ultimately, the ability to customize the indicator empowers users to adapt it to different market conditions and improve the accuracy of their trend analysis.
Calculation of Volume and Volatility Adjusted Price Change:
The term "previous" refers to the average of the previous data points over a defined length. Instead of considering the exact previous data point, the code calculates the average of a specific number of preceding data points. It enables the consideration of multiple preceding values, resulting in a smoother representation of trends and a more robust analysis of the data
The indicator starts by calculating the price change as a percentage relative to the previous opening price.
It determines the standard deviation of the close prices, providing a measure of price volatility.
The coefficient of variation is calculated by comparing the standard deviation to the previous close price.
Intraday volatility is calculated as the difference between the high and low prices divided by the close price.
Various ratios are derived by comparing the current volume to the previous volume and relating the intraday volatility to the coefficient of variation.
Cumulative Sum:
The Volume and Volatility Adjusted Price Change values are cumulatively summed to form the cumulative sum.
This cumulative sum represents the overall trend of the price changes, incorporating the impact of volume and volatility.
Average Cumulative Sum:
The average cumulative sum is calculated by applying a simple moving average to the cumulative sum over a specified window size.
This moving average helps smooth out the cumulative trend and highlights the general direction of the price changes.
Average Cumulative Sum Change:
The change in the average cumulative sum is determined by subtracting the previous average cumulative sum value from the current value.
This calculation provides insights into the rate of change in the cumulative trend.
Color Determination:
Thresholds are introduced to define levels at which the trend is considered to change.
The average cumulative sum change is compared against these thresholds.
If the average cumulative sum change exceeds the upper threshold, the color is set to green, indicating a potential upward trend.
If the average cumulative sum change falls below the lower threshold, the color is set to red, indicating a potential downward trend.
If the average cumulative sum change is within the threshold range, the color is set to a yellowish tone, indicating a neutral or transitional phase.
Plotting:
The average cumulative sum is plotted as a line on the chart.
The color of the line is determined based on the calculated color value, reflecting the perceived trend direction.
In summary, the Cumulative Trend indicator integrates volume, volatility, and price changes to provide a cumulative perspective on the trend. It tracks the cumulative price changes, calculates the average trend, and visually represents potential trend shifts through color changes. Traders and analysts can utilize this indicator to identify and monitor changes in the underlying trend, aiding in decision-making and market analysis.
The primary calculation remains the same but it calculates the volume and volatility adjusted price on three different time frames and Users can customize the indicator by selecting which calculations (time frame) to include in the average," it means that the code allows traders or analysts to have control over which specific calculations are used to compute the average volume and volatility adjusted price change. The indicator offers flexibility in choosing the underlying data points and time frames that contribute to the final trend analysis.
In the code, this customization is achieved through the use of three input options: useCalculation1, useCalculation2, and useCalculation3. Each of these options corresponds to a specific set of volume and volatility adjusted price change calculations with different time frames.
For example, if a user wants to include calculations based on a shorter time frame, they can enable useCalculation1. If they prefer calculations based on a longer time frame, they can enable useCalculation3. If they don't want to include a particular calculation in the average, they can simply disable the corresponding option.
By selecting or deselecting these options, users can tailor the indicator to their trading preferences and strategies. This flexibility allows them to experiment with different combinations of calculations to gain deeper insights into the trend's behavior across various time frames. Ultimately, the ability to customize the indicator empowers users to adapt it to different market conditions and improve the accuracy of their trend analysis.
Calculation of Volume and Volatility Adjusted Price Change:
The term "previous" refers to the average of the previous data points over a defined length. Instead of considering the exact previous data point, the code calculates the average of a specific number of preceding data points. It enables the consideration of multiple preceding values, resulting in a smoother representation of trends and a more robust analysis of the data
The indicator starts by calculating the price change as a percentage relative to the previous opening price.
It determines the standard deviation of the close prices, providing a measure of price volatility.
The coefficient of variation is calculated by comparing the standard deviation to the previous close price.
Intraday volatility is calculated as the difference between the high and low prices divided by the close price.
Various ratios are derived by comparing the current volume to the previous volume and relating the intraday volatility to the coefficient of variation.
Cumulative Sum:
The Volume and Volatility Adjusted Price Change values are cumulatively summed to form the cumulative sum.
This cumulative sum represents the overall trend of the price changes, incorporating the impact of volume and volatility.
Average Cumulative Sum:
The average cumulative sum is calculated by applying a simple moving average to the cumulative sum over a specified window size.
This moving average helps smooth out the cumulative trend and highlights the general direction of the price changes.
Average Cumulative Sum Change:
The change in the average cumulative sum is determined by subtracting the previous average cumulative sum value from the current value.
This calculation provides insights into the rate of change in the cumulative trend.
Color Determination:
Thresholds are introduced to define levels at which the trend is considered to change.
The average cumulative sum change is compared against these thresholds.
If the average cumulative sum change exceeds the upper threshold, the color is set to green, indicating a potential upward trend.
If the average cumulative sum change falls below the lower threshold, the color is set to red, indicating a potential downward trend.
If the average cumulative sum change is within the threshold range, the color is set to a yellowish tone, indicating a neutral or transitional phase.
Plotting:
The average cumulative sum is plotted as a line on the chart.
The color of the line is determined based on the calculated color value, reflecting the perceived trend direction.
In summary, the Cumulative Trend indicator integrates volume, volatility, and price changes to provide a cumulative perspective on the trend. It tracks the cumulative price changes, calculates the average trend, and visually represents potential trend shifts through color changes. Traders and analysts can utilize this indicator to identify and monitor changes in the underlying trend, aiding in decision-making and market analysis.
Catatan Rilis
Applied Inverse hyperbolic sine transformation to stabilize variance and better deal with outliers. Removed the ROC option for ease of operation.Catatan Rilis
updated chartCatatan Rilis
to update the chart.Catatan Rilis
updated overlay option
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