Cumulative Rotation Factor Tracks Higher and Lower Highs and Lows

Summary

The Cumulative Rotation Factor (CRF) is presented as a parameter-free indicator for distinguishing rising, falling, and consolidating market states. It starts from the previous CRF value and adjusts that value by comparing the current bar’s high and low with their previous values. A higher high adds one, while a lower high subtracts one; a higher low adds one, while a lower low subtracts one. The resulting change is colored green when positive, red when negative, and gray when unchanged.

The document gives the update rules but provides no chart, market examples, backtest, or performance evidence. It also leaves some implementation details unspecified, such as how simultaneous high and low conditions are applied and how equal prices affect the calculation. The color represents the latest CRF movement, so interpreting it as a full trend or consolidation classification would require additional rules and validation.

Key ideas

• CRF updates cumulatively by comparing each bar’s high and low with the previous bar’s values.
• A higher high adds one to the prior value, while a lower high subtracts one.
• A higher low adds one, while a lower low subtracts one.
• The indicator colors rising values green, falling values red, and unchanged values gray.
• The document provides no performance evidence or complete guidance for ambiguous comparison cases.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.