This script is designed to create a TradingView indicator called **"Normalized and Smoothed Cumulative Delta for Top 5 NASDAQ Stocks."** The purpose of this indicator is to track and visualize the cumulative price delta (the change in price from one period to the next) for the top five NASDAQ stocks: Apple Inc. (AAPL), Microsoft Corporation (MSFT), Alphabet Inc. (GOOGL), Amazon.com Inc. (AMZN), and Meta Platforms Inc. (FB).
### Key Features of the Script:
1. **Ticker Selection**: - The script focuses on the top five NASDAQ stocks by automatically setting their tickers.
2. **Price Data Retrieval**: - It fetches the closing prices for each of these stocks using the `request.security` function for the current timeframe.
3. **Delta Calculation**: - The script calculates the delta for each stock, which is simply the difference between the current closing price and the previous closing price.
4. **Cumulative Delta Calculation**: - It calculates the cumulative delta for each stock by adding the current delta to the previous cumulative delta. This helps track the total change in price over time.
5. **Summing and Smoothing**: - The cumulative deltas for all five stocks are summed together. - The script then applies an Exponential Moving Average (EMA) with a period of 5 to smooth the summed cumulative delta, making the indicator less sensitive to short-term fluctuations.
6. **Normalization**: - To ensure the cumulative delta is easy to interpret, the script normalizes it to a range of 0 to 1. This is done by tracking the minimum and maximum values of the smoothed cumulative delta and scaling the data accordingly.
7. **Visualization**: - The normalized cumulative delta is plotted as a smooth line, allowing users to see the overall trend of the cumulative price changes for the top five NASDAQ stocks. - A horizontal line is added at 0.5, serving as a midline reference, which can help traders quickly assess whether the normalized cumulative delta is above or below its midpoint.
### Usage: This indicator is particularly useful for traders and investors who want to monitor the aggregated price movements of the top NASDAQ stocks, providing a high-level view of market sentiment and trends. By smoothing and normalizing the data, it offers a clear and concise visualization that can be used to identify potential market turning points or confirm ongoing trends.
진정한 TradingView 정신에 따라, 이 스크립트의 저자는 트레이더들이 이해하고 검증할 수 있도록 오픈 소스로 공개했습니다. 저자에게 박수를 보냅니다! 이 코드는 무료로 사용할 수 있지만, 출판물에서 이 코드를 재사용하는 것은 하우스 룰에 의해 관리됩니다. 님은 즐겨찾기로 이 스크립트를 차트에서 쓸 수 있습니다.