Tutorial 152 | Creating an Advancing/Declining issues indicator for daily and minute charts

Tutorial152

The advancing issues and declining issues line (AD line) is a technical indicator that can be used to indicate market sentiment. An AD Line indicator shows the difference between the number of advancing and declining stocks on a daily basis (depending on the symbols used). It could be used with S&P 500 advancing issues and declining issues data, symbols: $ADVSP and $DECLSP, for example. The value plotted is cumulative, with today’s value added or subtracted from the cumulative value the previous day.

Tutorial 152 calculates the cumulative value of the difference between two data streams plotted on a daily chart AND the same (or close, see below) values on minute interval charts.

The same calculation is done by the TradeStation AdvanceDeclineDiff function. The difference can be plotted on a daily chart using a simple program such as:

Inputs: AdvIssues( Close of data1 ), DecIssues( Close of data2 );
Vars: AD( 0 );
AD = AdvanceDeclineDiff( AdvIssues, DecIssues );
Plot1( AD, "AD" );

This works perfectly on a daily chart but if this program is applied to a minute based chart the results will be different because each bar on the minute chart shows a ‘snap shot’ of the advancing issues and declining issues data for that bar. In terms of the AD line, to match the daily data, the only relevant bar is the last bar of the day. This tutorial demonstrates how to plot the difference between advancing and declining issues on a minute based chart.

In this tutorial advancing issues are the number of securities that have closed above their prior closing price (yesterday’s close) during a one day.

Two plots are made for for the Advance/Decline line on the minute interval chart. The first updates the value every time a new day begins. This is equivalent to the value plotted on the daily chart. The other plot updates throughout the day.

The minute plots. The plot in blue is updated once per day. The other plot is updated tick-by-tick.

The tutorial also shows how to calculate the slope of the Advance/Decline line for both daily and minute charts.

To use this tutorial create a chart containing two data streams.

Tutorial 152 applied to a 15 minute chart

N.B. Sometimes daily data and minute based data differ. This tutorial has only been tested with daily and minute charts using the symbols $ADVSP as data1 and $DECLSP as data2

The _Tutorial152 program is available for immediate download for $34.95. The download is a TradeStation ELD file that includes the unprotected and commented program. This program will work in MultiCharts.

How the tutorial program works

In order to arrive at the same calculation as on the daily chart, the calculation of the Advance/Decline value on charts with a minute interval is made on the first bar of the day using the following code:

If D <> D[1] then // New day and 'minutes' type bar
Begin
CumulAdvDec = CumulAdvDec[1] + AdvIssues[1] - DecIssues[1]; // Calculate the cumulative advance/decline
End;

The program detects whether it is a daily or minute interval chart using the following code: If BarType = 2 then ….. // Daily chart or If BarType = 1 then // Minute interval chart

In order to calculate the interim values another variable the value is recalculated every tick uing similar code:

MinCumulAdvDec = CumulAdvDec + AdvIssues - DecIssues;

Bear in mind that CumulAdvDec stays the same throughout the day.

Calculating the slope

For the daily chart, the slope is calculated using a standard lines regression calculation. _Tutorial152 uses inline code in the program but it could have used the standard LinearRegression function.

On minute interval charts the calculation is not quite so easy. Say the length to calculate the slope is 5 (LRLength = 5). We cannot just look at the last 5 values of the Advance/Decline value on the minute interval chart because what we actually need is the last 5 daily values. In order to access this data easily _Tutorial 152 stores this data in an array.

Array: int DailyVals[]( 0 ); // Dynamic array that holds previous days values for minute interval charts

The calculations for daily and minute charts are compared in the following video.

Video summary of tutorial 152


Please email if you find any bugs, notice any errors, or have questions about the tutorial.

THESE INDICATORS, SHOW ME STUDIES, STRATEGIES AND OTHER PROGRAMS HAVE BEEN INCLUDED SOLELY FOR EDUCATIONAL PURPOSES.

TO THE BEST OF MARKPLEX CORPORATION’S KNOWLEDGE, ALL OF THE INFORMATION ON THIS PAGE IS CORRECT, AND IT IS PROVIDED IN THE HOPE THAT IT WILL BE USEFUL. HOWEVER, MARKPLEX CORPORATION ASSUMES NO LIABILITY FOR ANY DAMAGES, DIRECT OR OTHERWISE, RESULTING FROM THE USE OF THIS INFORMATION AND/OR PROGRAM(S) DESCRIBED, AND NO WARRANTY IS MADE REGARDING ITS ACCURACY OR COMPLETENESS. USE OF THIS INFORMATION AND/OR PROGRAMS DESCRIBED IS AT YOUR OWN RISK.

ANY EASYLANGUAGE OR POWERLANGUAGE TRADING STRATEGIES, SIGNALS, STUDIES, INDICATORS, SHOWME STUDIES, PAINTBAR STUDIES, PROBABILITYMAP STUDIES, ACTIVITYBAR STUDIES, FUNCTIONS (AND PARTS THEREOF) AND ASSOCIATED TECHNIQUES REFERRED TO, INCLUDED IN OR ATTACHED TO THIS TUTORIAL OR PROGRAM DESCRIPTION ARE EXAMPLES ONLY, AND HAVE BEEN INCLUDED SOLELY FOR EDUCATIONAL PURPOSES. MARKPLEX CORPORATION. DOES NOT RECOMMEND THAT YOU USE ANY SUCH TRADING STRATEGIES, SIGNALS, STUDIES, INDICATORS, SHOWME STUDIES, PAINTBAR STUDIES, PROBABILITYMAP STUDIES, ACTIVITYBAR STUDIES, FUNCTIONS (OR ANY PARTS THEREOF) OR TECHNIQUES. THE USE OF ANY SUCH TRADING STRATEGIES, SIGNALS, STUDIES, INDICATORS, SHOWME STUDIES, PAINTBAR STUDIES, PROBABILITYMAP STUDIES, ACTIVITYBAR STUDIES, FUNCTIONS AND TECHNIQUES DOES NOT GUARANTEE THAT YOU WILL MAKE PROFITS, INCREASE PROFITS, OR MINIMIZE LOSSES.

Disclaimer The information, materials, products and services on this Web site are made available subject to the following terms and conditions. Markplex Corporation reserves the right to change these terms and conditions at its sole discretion. This Web site and any downloads, videos, tutorials, programs and information contained herein is presented solely for educational, informational, and/or entertainment use and under no circumstances should be used for actual trading. We at Markplex Corporation are not Broker/Dealers, Financial Advisers or Registered Analysts. No offer or solicitation to buy or sell securities, securities derivatives, futures products or off-exchange foreign currency (forex) transactions of any kind, or any type of trading or investment advice, recommendation or strategy, is made, given or in any manner endorsed by Markplex Corporation. You are fully responsible for any investment or trading decisions you make. Futures and options trading has a large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. This Web site is neither a solicitation nor an offer to buy and/or sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this Web site. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. No warranties of profitability are being made or given. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options futures or forex); therefore, you should not invest or risk money that you cannot afford to lose. CFTC RULE 4.41 - Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Screen shots on this site are examples and are not meant to imply that any of the programs or tutorials available on this Web site will generate profitable trades. EasyLanguage or PowerLanguage trading strategies, signals, studies, indicators, showme studies, paintbar studies, probabilitymap studies, activitybar studies, functions (and parts thereof) and associated techniques referred to, included in or attached to this tutorial or program description are examples only, and have been included solely for educational, informational, and entertainment use. Markplex Corporation does not recommend that you use any such trading strategies, signals, studies, indicators, showme studies, paintbar studies, probabilitymap studies, activitybar studies, functions (or any parts thereof) or techniques. The use of any such trading strategies, signals, studies, indicators, showme studies, paintbar studies, probabilitymap studies, activitybar studies, functions and techniques does not guarantee that you will make profits, increase profits, or minimize losses. Markplex Corporation assumes no liability for any damages, direct or otherwise, resulting from the use of this information and/or program(s) described, and no warranty is made regarding its accuracy or completeness. Use of this Web site including the information, tutorials and/or programs included on it is at your own risk. You shall indemnify and hold Markplex Corporation harmless from any and all liability, loss, trading losses, costs, damage, or expense, including attorneys' fees you or third party may suffer (other than damage to your tangible property or injuries to employees occurring during the course of work) as a result of claims, demands, costs, or judgments arising out of third party and any other claims based on Markplex Corporation's performance, including, but not limited to losses resulting from the use of Markplex Corporation developed software, programs, web sites, tutorials, or the TradeStation charting and/or trading platform. Any testimonials on this Web site may not be representative of the experience of other clients and are not indicative of future results or success.
This Web site contains or may contain references and links to other companies and/or their Web sites, none of which is under the control of Markplex Corporation. Markplex Corporation makes no representations, warranties or endorsements whatsoever about any other Web sites to which you may have access through the Markplex Corporation Web site, or any products or services of those other companies, even if the products or services of those other companies or their Web sites are described or offered on the Markplex Corporation Web site or integrated with Markplex Corporation's products or services. TradeStation®, EasyLanguage® and PowerEditor® are registered trademarks of TradeStation Technologies, Inc. Other brand and product names which appear on this site are the trademarks or service marks of their respective owners, including: Microsoft® is a registered trademark in the United States Microsoft®Excel® is a registered trademark of Microsoft® Neither TradeStation Technologies nor any of its affiliates has reviewed, certified, endorsed, approved, disapproved or recommended, and neither does or will review, certify, endorse, approve, disapprove or recommend, any product or service that offers training, education or consulting regarding the use of EasyLanguage.

By continuing to use and navigate our sites, services, applications, tools or messaging, you are agreeing to our Terms and Conditions and the use of cookies, web beacons and similar technologies as described in our Privacy Policy and Privacy Policy on the use of cookies.

Cookie settings

Below you can choose which kind of cookies you allow on this website. Click on the "Save cookie settings" button to apply your choice.

FunctionalOur website uses functional cookies. These cookies are necessary to let our website work.

AnalyticalOur website uses analytical cookies to make it possible to analyze our website and optimize for the purpose of a.o. the usability.

Social mediaOur website places social media cookies to show you 3rd party content like YouTube and FaceBook. These cookies may track your personal data.

AdvertisingOur website places advertising cookies to show you 3rd party advertisements based on your interests. These cookies may track your personal data.

OtherOur website places 3rd party cookies from other 3rd party services which aren't Analytical, Social media or Advertising.