Entity K-line consistency trading strength
factor.formula
Entity K-line definition:
Consistent Trading Strength Factor (CTSI):
in:
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It is a consistency parameter that controls the definition standard of the real candlestick. The larger the $\alpha$ value, the looser the definition of the real candlestick, that is, the longer the shadow length is allowed; the smaller the $\alpha$ value, the stricter the definition of the real candlestick, and the shorter the shadow length is required. Usually (\alpha) takes a value between 0.2 and 0.5.
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It is the sum of the trading volumes that are determined to be entity K-lines in the i-th 5-minute period. This value represents the strength of the market's consistent trading in this period. The larger the value, the stronger the consistent trading.
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is the total trading volume of the ith 5-minute period. This value represents the overall trading activity of the market during this period.
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It is the period parameter of the moving average. It determines the length of the historical data window used when calculating CTSI. Smaller d values are more sensitive to market changes, while larger d values are smoother. This parameter is usually selected between 5 and 20.
factor.explanation
This factor assumes that the collective consistency of market trading behavior indicates potential trend opportunities. When a stock's trading shows a high consistency (i.e., a high CTSI value) over a period of time, it indicates that the market may be undergoing a process of information absorption and price adjustment. This consistency is usually driven by market sentiment or specific news, and may indicate that stock prices may fluctuate significantly in the future. By tracking and analyzing the CTSI value, traders can identify potential opportunities for trend formation or acceleration. At the same time, this factor can also serve as a risk warning signal. When the CTSI value is abnormally high, it may mean that market sentiment is overheated and the risk of price reversal needs to be alert. It should be noted that the effectiveness of this factor is affected by the market structure and the characteristics of the trading target, and may need to be adjusted and optimized according to actual conditions.