Monte Carlo Simulation, also known as the Monte Carlo Method or a multiple probability simulation, is a mathematical technique, which is used to estimate the possible outcomes of an uncertain even. In simple words, mcs using random numbers to simulate events and under law of large number , the out come of prediction will similar to what happens in reality in theory.
The model using in this indicator is geometric Brownian motion , basic equation of GBM is Delta price=price(drift x dt + sigma x dW)
Drift is similar to 'trend' and W is a random variable,sigma is volatility of price.
It's interesting that how the simulated price touch those trend line or resistance/support.
The model using in this indicator is geometric Brownian motion , basic equation of GBM is Delta price=price(drift x dt + sigma x dW)
Drift is similar to 'trend' and W is a random variable,sigma is volatility of price.
It's interesting that how the simulated price touch those trend line or resistance/support.
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.