The random walk generator allows users of the Monte Carlo to further understand how the Monte Carlo projection is generated by creating a visual representation of individual random walks. Trends that occur on the random walks may correlate to the historical price action of the underlying security.
Understanding the Random Walk Simulation This indicator randomly generates alternative price outcomes derived from the price movements of the underlying security. Monte Carlo methods rely on repeated random sampling to create a data set that has the same characteristics as the sample source, representing examples of alternate outcomes. The data set created using random sampling is called a “random walk”.
First, every bar in the time stamp is measured logarithmically and put into a population. Then, a sample is drawn at random from the population and is used to determine the next price movement of the random walk. This process is repeated fifteen times to visualize whether the alternative outcomes lie above or beneath the current market price of the security.
Can you elaborate how to use this ? What blue and red colour signifies and what are those different lines? Just by looking at colours I think it works like dynamic S/R levels. and red colour of any line indicates that next candle price will remain below that red line above the blue line..... Am I right? It would be great if you share this with some elaboration.
Dhanvi26
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Nice Work. Can you please grant me access to the script? Also How do I add this as strategy. When I add this I get this as an indicator
Dhanvi26
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Great work. Can you please provide access to the script?