Standardized Cumulative Deltas [LuxAlgo]

The Standardized Cumulative Deltas tool allows traders to compare the cumulative standardized open-close difference for up to 10 different tickers, allowing them to visualize the general sentiment for all selected tickers.

These results allow the construction of two areas showing the average or extreme bullish and bearish cumulative change for all enabled tickers, providing a summarized view of the overall ticker group sentiment.

🔶 USAGE



This tool is meant to give a full picture of the individuals and/or overall selected tickers, and unlike classical indicators, the displayed series of values is not meant to be directly interpreted over time.

Given the selected lookback period, a majority of observations being above 0 indicate an overall bullish market for the asset.



By default, the auto lookback period feature is enabled, allowing the tool to use all the visible bars for its calculations. Traders can also set the lookback period manually. The above chart uses a fixed lookback period of 500.



Up to 10 tickers can be used. While major cryptocurrencies are set by default, the users can set a specific basket of assets, such as US equities, forex pairs, commodities, etc.

🔹 Densities



The provided areas, here called densities, can be used to get an overall sentiment of the selected tickers. The upper density (bullish) processes positive deltas, while the lower one (bearish) processes negative ones.

Interpretation is subject to the selected "Density Mode".

• Average: Densities track the average bullish/bearish cumulative deltas for the selected tickers. For example, a more prominent bullish density would indicate that, on average, cumulative deltas were positive across the tickers.
  
• Envelope: Densities track the extreme values made by bullish/bearish cumulative deltas for the selected tickers. Here, a more prominent density would indicate more volatile bullish/bearish movements, depending on the density.
  

🔹 Dashboard



The tool features a dashboard with active tickers and their respective colors for traders' convenience.

🔶 DETAILS

🔹 Densities



Densities are obtained by applying a forward-backward exponential moving average on the average, or the highest/lowest cumulative series, depending on the selected Density Mode.

The resulting densities are smoothed by the "Smoothing" parameter located in the Settings panel, with higher values returning smoother envelopes with less variability.

Do note that the smoothing method used here is subject to repainting.

🔶 SETTINGS

• Lookback: Select the lookback period and enable/disable the Auto Lookback feature
  
• Tickers: Enable/disable and select up to 10 tickers and their colors
  
• Density Mode: Determine how densities are calculated
  

🔹 Dashboard

• Show Dashboard: Enable/disable the dashboard
  
• Position: Select the dashboard position
  
• Size: Select the dashboard size
  

🔹 Style

• Density: Enable/disable the density areas
  
• Bullish Density: Select the color of the top density area
  
• Bearish Density: Select the color of the bottom density area
  
• Smoothing: Select the smoothing constant for the EMA calculation