This method calculates key value areas based on the Mean of all rotations. Since markets tend to have a right-skewed distribution, where most rotations are clustered around the Mode but extreme outliers push the Mean higher, we’ve added tools to handle this skewness.

• Winsorization: This optional feature reduces the impact of extreme outliers by capping them at a certain threshold (e.g., 90th percentile). This makes the Mean more representative of the bulk of rotations.
• Mode-Based Calculation: Instead of using the Mean, you can base the calculations on the Mode to better focus on the majority of rotations. This is useful for ignoring extreme outliers that affect the Mean.

When using the Standard Deviation method, the following key areas are calculated:

• Value Area Low (VAL68) = Mean (or Mode) – 1 standard deviation.
• Value Area High (VAH68) = Mean (or Mode) + 1 standard deviation.
• Impulse Area (VAH90) = Mean (or Mode) + 1.666 standard deviations.

This method works similarly to how volume profiles calculate their value areas. It starts from the most frequent rotations around the Mode and accumulates them until 68% of all rotations are included. This approach helps highlight the most frequent market rotations while reducing the impact of outliers.

• Value Area Calculation: The most common rotations (bins) are prioritized until 68% of total rotations are reached, providing a clearer picture of what is considered ‘normal’ market behavior.
• Impulse Area (VAH90): This is calculated based on the 90th percentile, marking rotations considered impulsive.

• Customizable Display: Users can adjust the positioning, sizing, and color of histogram bars, borders, and text to their liking.
• OpenGL Compatibility: The study is fully compatible with OpenGL, ensuring a smooth workflow within Sierra Chart.