How do you construct a cumulative indicator?

A cumulative indicator can be constructed for any price series that oscillates above/below zero. Cumulative adds when positive and subtracts when negative. Therefore, this setting will not work for a price series that is always positive. Net Advances, Net Advancing Volume and Net New Highs fluctuate above/below zero. Net Advances equals advancing stocks less declining stocks (advance-decline issues). Net Advancing Volume equals volume of advancing stocks less volume of declining stocks (advance-decline volume). Net New Highs equals new 52-week highs less new 52-week lows (new highs-new lows). These “breadth” statistics are available for the NYSE, Nasdaq, Amex, TSE and TSX. In the symbol catalog, search the terms “issues”, “volume” or “highs” to find corresponding symbols. Below are the search results for “highs”.

To create a cumulative chart, first open a SharpChart with the appropriate symbol. In this example, I am using Net New Highs for the Toronto Stock Exchange ($TOHL). Your default chart will come up and we can then adjust the settings. First, select “plain OHLC bars” under “ChartStyles” and click update. A plain chart will then appear. Second, select “cumulative” under chart “type” and “price” in the indicator window. Enter $THOL for the parameters and set the “style” as “area.

Click update and you will see a chart for cumulative Net New Highs in the main window and an area chart of daily Net New Highs in the indicator window. This is a good base for other breadth charts. Now try changing the symbol to $TOAD to see the Advance-Decline line in the main window and Net Advances in the indicator window.

Click this chart to see the settings.

Comments

[Philip Cataldo]

I tried to set up cumulative breath charts as you did in CandleGlance style like your breath charts are kept but the format changes my cumulative to daily. Is there any way to duplicate and save your 6 breath charts ?

Art's Answer: SharpCharts subscribers can click on the charts, see the settings and then save them to one of their favorites lists. These charts would not work with the candleglance feature.