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.
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.
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.
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.
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