PROTECTED SOURCE SCRIPT
Dynamic Probability Bands (Historical Bands)
Dynamic Probability Bands (Blended/Original Modes)
This indicator displays dynamic probability bands that estimate the likelihood (on a 0–100 scale) for a stock to move within certain price zones relative to a dynamically calculated center. It combines state‐of‐the‐art volatility scaling with customizable center calculation methods, allowing traders to analyze both current and historical price probability levels.
Key Features:
Dual Center Modes:
Original Mode: Uses either an EMA or yesterday’s pivot (average of high, low, and close) as the center.
Blended Mode: Inspired by HPDR Bands, it calculates the center by blending a long-term “visible” range (expanded by custom multipliers) with recent price extremes. This blending makes the center both robust and responsive.
Volatility Scaling with Exponential Factor: The script measures volatility using ATR and expands the forecast range over a user-defined number of bars. An exponent factor lets you adjust the dynamic expansion—from the familiar square-root behavior (with a factor of 0.5) to more aggressive widening.
Probability Levels via Inverse Normal Function: Custom inverse error and inverse-normal functions convert cumulative probability inputs (ranging from near 0% to almost 100%) into z-scores. The resulting band levels are computed as: Band Level = Center + (Scaled Volatility × z-score) Separate series are generated for upward (above the center) and downward (below the center) bands.
Historical Analysis & Visualization: The bands are plotted as continuous series, with fill colors between adjacent bands for clear visual separation. This lets you analyze how the probability zones have evolved over time.
Fully Customizable: Users can adjust key parameters including the choice of center method, lookback periods, multipliers, forecast horizon, and expansion dynamics to suit various markets and strategies.
Use This Indicator To:
Assess potential future price zones based on statistical probability.
Monitor the dynamic evolution of price ranges as market conditions change.
Customize your analysis through blended or traditional center calculations and variable volatility scaling.
This indicator displays dynamic probability bands that estimate the likelihood (on a 0–100 scale) for a stock to move within certain price zones relative to a dynamically calculated center. It combines state‐of‐the‐art volatility scaling with customizable center calculation methods, allowing traders to analyze both current and historical price probability levels.
Key Features:
Dual Center Modes:
Original Mode: Uses either an EMA or yesterday’s pivot (average of high, low, and close) as the center.
Blended Mode: Inspired by HPDR Bands, it calculates the center by blending a long-term “visible” range (expanded by custom multipliers) with recent price extremes. This blending makes the center both robust and responsive.
Volatility Scaling with Exponential Factor: The script measures volatility using ATR and expands the forecast range over a user-defined number of bars. An exponent factor lets you adjust the dynamic expansion—from the familiar square-root behavior (with a factor of 0.5) to more aggressive widening.
Probability Levels via Inverse Normal Function: Custom inverse error and inverse-normal functions convert cumulative probability inputs (ranging from near 0% to almost 100%) into z-scores. The resulting band levels are computed as: Band Level = Center + (Scaled Volatility × z-score) Separate series are generated for upward (above the center) and downward (below the center) bands.
Historical Analysis & Visualization: The bands are plotted as continuous series, with fill colors between adjacent bands for clear visual separation. This lets you analyze how the probability zones have evolved over time.
Fully Customizable: Users can adjust key parameters including the choice of center method, lookback periods, multipliers, forecast horizon, and expansion dynamics to suit various markets and strategies.
Use This Indicator To:
Assess potential future price zones based on statistical probability.
Monitor the dynamic evolution of price ranges as market conditions change.
Customize your analysis through blended or traditional center calculations and variable volatility scaling.
Skrip dilindungi
Skrip ini diterbitkan sebagai sumber tertutup. Akan tetapi, anda boleh menggunakannya dengan percuma dan tanpa had – ketahui lebih lanjut di sini.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Skrip dilindungi
Skrip ini diterbitkan sebagai sumber tertutup. Akan tetapi, anda boleh menggunakannya dengan percuma dan tanpa had – ketahui lebih lanjut di sini.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.