Searching for Pivots on Cumulative Delta
"Cumulative Delta Pivot Required", "Cumulative Delta Pivot Alignment Lookback"
The settings relate to how swings are matched between price and CD. For example, say you have 2 swing lows on the main price chart, peak1 on the left and peak2 on the right.
The question is then what do you measure against on the CD delta bars? Which bars to use?
Looking down to CD, the peaks on CD are often exactly on the same bars as the price chart but sometimes they are not. In other words, we often see peak1 and peak2 on CD that are exactly in alignment with the peaks on price. In these cases its easy to say that we use the same bars on both price and CD to measure divergence.
But what happens if they don't align on the exact same bar? One option might be to use the same bars as price regardless if these line up. The other option is to attempt to line them up by looking 1-2 bars to the left and right and trying to find a peak to use. This latter option is what a human would most likeky do.
These 2 settings you control this behavior:
- "Cumulative Delta Pivot Required" - when set to no, then no attempt is made to find a peak. Divergence measurement is done strictly looking at the price bars and then using those same bard for CD regardless of swing alignment. When set to yes, an attempt is made to find a swing x bars back
- Alignment Lookback - how many bars to lookback