Positivity Indicator

The Positivity Index is an indicator that quantifies bullish or bearish sentiment by measuring the percentage of positive price changes over a specified period. It provides a clear percentage-based view of market sentiment, ranging from -1 (all periods negative) to 1 (all periods positive).

About the Positivity Indicator

The Positivity Indicator is a momentum indicator that quantifies bullish or bearish sentiment by measuring the percentage of positive price changes over a specified period. Unlike traditional momentum oscillators that measure the magnitude of price changes, the Positivity Index focuses purely on the direction of movement, providing a clear percentage-based view of market sentiment.

What It Measures

The Positivity Indicator measures the percentage of periods where the closing price was higher than the previous period's close over a specified lookback window. It provides a directional momentum metric that ranges from 0% (all periods negative) to 100% (all periods positive).

When to Use

  • Trend Identification: Values consistently above 0 suggest bullish trends; below 0 suggest bearish trends
  • Momentum Confirmation: High readings (0.7) confirm strong bullish momentum; low readings (-0.7) confirm bearish momentum
  • Overbought/Oversold Conditions: Extreme readings can signal potential reversals in mean-reverting markets
  • Divergence Analysis: Compare Positivity Indicator with price to identify potential trend changes
  • Market Sentiment: Quantify the prevailing directional bias in the market

Example Usage

use centaur_technical_indicators::other_indicators::bulk::positivity_indicator;
use centaur_technical_indicators::ConstantModelType;

pub fn main() {
    // fetch the data in your preferred way
    // let open = vec![...];  // open prices
    // let previous_close = vec![...];  // previous close prices
    
    let signal_period = 14;
    let model = ConstantModelType::SimpleMovingAverage;
    
    let positivity = positivity_indicator(&open, &previous_close, signal_period, model);
    println!("Positivity Indicator: {:?}", positivity);
}

from centaur_technical_indicators.other_indicators.bulk import positivity_indicator

# fetch the data in your preferred way
# open = [...]  # open prices
# previous_close = [...]  # previous close prices

signal_period = 14
model = "simple_moving_average"

positivity = positivity_indicator(open, previous_close, signal_period, model)
print(f"Positivity Indicator: {positivity}")

import init, { 
    other_bulk_positivityIndicator,
    ConstantModelType
} from 'https://cdn.jsdelivr.net/npm/centaur-technical-indicators@latest/dist/web/centaur-technical-indicators.js';

await init();

// fetch the data in your preferred way
// const open = [...];  // open prices
// const previousClose = [...];  // previous close prices

const signalPeriod = 14;
const model = ConstantModelType.SimpleMovingAverage;

const positivity = other_bulk_positivityIndicator(open, previousClose, signalPeriod, model);
console.log('Positivity Indicator:', positivity);