OPEN-SOURCE SCRIPT
Updated Likelihood of Winning - Probability Density Function
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 dynamics.
The tool's flexibility allows for customization of the data series, lookback periods, and target settings for both long and short scenarios. It features a color-coded visualization to easily distinguish between probabilities of hitting specified targets, enhancing decision-making in trading strategies.
I'm excited to share this indicator with the trading community, hoping it will enhance data-driven decision-making and offer a deeper understanding of market risks and opportunities. My goal is to continuously improve this tool based on user feedback and market evolution, contributing to more informed trading practices.
This indicator leverages the "NormalDistributionFunctions" library, enabling easy integration into other indicators or strategies. Users can readily embed advanced statistical analysis into their trading tools, fostering innovation within the Pine Script community.
The tool's flexibility allows for customization of the data series, lookback periods, and target settings for both long and short scenarios. It features a color-coded visualization to easily distinguish between probabilities of hitting specified targets, enhancing decision-making in trading strategies.
I'm excited to share this indicator with the trading community, hoping it will enhance data-driven decision-making and offer a deeper understanding of market risks and opportunities. My goal is to continuously improve this tool based on user feedback and market evolution, contributing to more informed trading practices.
This indicator leverages the "NormalDistributionFunctions" library, enabling easy integration into other indicators or strategies. Users can readily embed advanced statistical analysis into their trading tools, fostering innovation within the Pine Script community.
Release Notes
Removed input constraintsRelease Notes
Linked to the newer version of related libraryOpen-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.