Why Use the Cumulative Percent Winners Indicator?
As you watch a price series unfold in real time, you see prices drop and then start to increase. You’re not sure if the price increase signals a new upside or is just a temporary blip on the downside. Therefore, you need another measure to confirm if the rise in prices is for real and a new upside is forming. In short you need a second opinion. The cumulative percent winners serves as that second opinion. The rational for the indicator is when prices move down, the cumulative percent winners moves down because fewer and fewer trades are winners. Eventually prices bottom and then turn up and more and more trades are winners. Therefore, the values of the cumulative percent winners make their lowest value and then begin to turn up thus confirming the up move in prices. The cumulative percent winners bottoms sometime after prices bottom. Cumulative Returns For each sell date of the price series CTM: 1. Computes the cumulative sum of gains and losses. 2. Computes the cumulative number of al
