Anchored CLS & CLSD

Definition

These two indicators provide insights into net long and short positioning over anchored time intervals (e.g., daily, 4-hour, or 1-hour), offering a standardized view of market sentiment and directional bias.

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1. Anchored Cumulative Net Long Short (Anchored CLS)

Anchored CLS calculates the cumulative net difference between long and short positions within a predefined anchored timeframe, resetting at regular intervals (e.g., daily, 4-hour, or 1-hour).

Key Features:

• Reset Points: Calculation starts fresh at each anchor point (e.g., daily, 4-hour, or 1-hour).

• Longs: Tracks the total net long positions within the anchored period.

• Shorts: Tracks the total net short positions within the anchored period.

Visualization: Represented as two separate lines:

• Anchored Net Longs Line: Tracks the cumulative total of net long positions.

• Anchored Net Shorts Line: Tracks the cumulative total of net short positions.

Why It Matters:

• Provides clarity on net positioning trends within anchored timeframes.

• Highlights periods of sustained long or short dominance.

• Identifies positioning shifts across standardized time intervals.

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2. Anchored Cumulative Net Long Short Delta (Anchored CLSD)

Anchored CLSD calculates the difference between Anchored Net Longs and Anchored Net Shorts within the same predefined anchor points.

Delta = (Anchored Net Longs) − (Anchored Net Shorts)

Key Features:

• Positive Delta: Long positions dominate during the anchored timeframe.

• Negative Delta: Short positions dominate during the anchored timeframe.

Visualization: Represented as a bar graph, where:

• Positive Bars: Indicate net long dominance.

• Negative Bars: Indicate net short dominance.

Why It Matters:

• Highlights directional bias within anchored periods.

• Identifies imbalances in positioning that may signal market trends or reversals.

• Provides clear comparisons of long vs. short sentiment across multiple anchored intervals.

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Why These Indicators Matter Together:

• Market Sentiment Analysis: Clearly distinguish between long and short positioning trends.

• Directional Insights: Understand whether long or short traders dominate during specific anchored intervals.

• Comparative Analysis: Consistent anchor points allow for trend analysis across different timeframes.

• Risk Management: Identify potential market stress points caused by extreme long or short dominance.

Together, Anchored CLS and Anchored CLSD offer traders a structured, time-anchored view of market positioning, helping to identify trends, imbalances, and potential turning points in trader sentiment.