In developing the "Likelihood of Winning - Probability Density Function (PDF)" indicator, my aim was to offer traders a statistical tool to quantify the probability of reaching target prices. This indicator, grounded in risk assessment principles, enables users to analyze potential outcomes based on the normal distribution, providing insights into market...
Normal Distribution Asymmetry & Volatility Zones Indicator provides insights into the skewness of a price distribution and identifies potential volatility zones in the market. The indicator calculates the skewness coefficient, indicating the asymmetry of the price distribution, and combines it with a measure of volatility to define buy and sell zones.
The key...
When doing machine learning using oscillators, it would be better if the oscillators were normally distributed.
So I analyzed the distribution of oscillators.
The value of the oscillator was divided into 50 groups each from 0 to 100.
ex) if rsi value is 45.43 -> group_44, 58.23 -> group_58
Ocscillators : RSI, Stoch, MFI, WT, RVI, etc....
Caution: The normal...
Does RSI Follow a Normal Distribution?
The value of RSI was converted to a value between 0~2, 2~4, ..., 98~100, and the number of samples was graphed.
The Z values are expressed so that the values corresponding to 30 and 70 of the RSI can be compared with the standard normal distribution.
Additionally, when using the RSI period correction function of the 'RSI...
The Return Abnormality Score indicator is designed to help traders identify potential reversals in price by detecting abnormal daily returns beyond a certain significance level. The indicator uses a normal cumulative distribution function to calculate the probability of the daily return and flags it when it exceeds the specified significance level.
Traders can...
One-Sided Gaussian Filter w/ Channels is a Gaussian Moving Average that is calculated using a Fibonacci weighting function. Keltner channels have been added to show zones of exhaustion. A better name would be "Half Gaussian bell weighted" or "Half normal distribution weighted" indicator, since the weights for calculation of the average (similar to linear...
Bollinger Bands are the result of the assumption that closing prices will follow a normal distribution.
However, when I actually calculated the probability, the closing price does not follow a normal distribution.
According to the normal distribution, the probability that Z > 2 should be 2.2%, but on the chart, the probability is 6~9%.
Can we get a useful...
Probability Distribution Histogram
During data exploration it is often useful to plot the distribution of the data one is exploring. This indicator plots the distribution of data between different bins.
Essentially, what we do is we look at the min and max of the entire data set to determine its range. When we have the range of the data, we decide how many...
The exa is an oscillator that combines fisher transform with distance from moving average and it is based on a theory that exhaustion can be derived from how far price is able to extend from a moving average, on average.
The fisher transform converts price into a gaussian normal distribution, also known as a bell curve {1}. A normal distribution is a type of...
Volatility bands based on average candle percentage spread. Tested on BTCUSD charts only.
Based on the 68-95-99.7 rule, it seems that the spread, for daily and 4-H candles, follows a normal distribution: that means, around 85% of candles have a %-spread within sma(low/high, some_len) and sma(high/low, some_len) , and around 95% of candles within the pow2 of...
![SPX: Return Abnormality Score [SpiritualHealer117]](https://s3.tradingview.com/h/HCPEp4pn_mid.png "Return Abnormality Score [SpiritualHealer117]")
![USDCAD: One-Sided Gaussian Filter w/ Channels [Loxx]](https://s3.tradingview.com/l/LIGmsUQa_mid.png "One-Sided Gaussian Filter w/ Channels [Loxx]")
