This is a trading item or a component that was created using QuantShare by one of our members.
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Cumulative sum or running total of a technical indicator refers to the algebraic sum of all previous values of this technical indicator.
The Cumulative sum formula is as follows:
A = B + C * previous value of A
This trading indicator is implemented in CSharp. It allows you to easily use the cumulative sum of a technical indicator in QuantShare language.
The indicator name is "cumTI" and it has two parameters:
Series: Series or technical indicator used in the cumulative sum; this series is equal to "B" in the above formula.
Factor: Factor that is used to multiply the previous values of A; the factor is equal to "C" in the above formula.
This function is mainly used to create an indicator that requires previous result of its own calculation.
A 20% exponential moving average for example is implemented in Metastock using the following formula:
a = (close*0.2)+(0.8*PREV);
Using this cumulative sum function, you can create this moving average by typing:
a = cumTI(close*0.2, 0.8);
This is equivalent to:
a = (close*0.2) + (0.8 * previous value of a)
Many other trading indicators or market composites can be implemented using the "cumTI" function. Example: On Balance Volume, McClellan Summation Index, Advance-Decline Line ...
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.