OPEN-SOURCE SCRIPT

2B detector beta

Identifying a trend reversal is practically tricky, given that price movement is somewhat unpredictable and mostly obeys a power law. In which the price difference is primarily out of normal distribution. According to Benoit Mandelbrot, the price distribution follows an alpha-stable distribution with α equal to 1.7.

Real data observation suggests that stock prices do not follow the Random Walk Hypothesis or Brownian motion. Instead, they follow a fractal pattern. Fractals exhibit similar patterns at different scales called self-similarity. Using this character, one can develop fractal patterns to identify local highs and local lows.

This indicator identifies the reversal signal so-called 2B base on the following logic:

1. Identify local highs and local lows with fractals
2. Define relative positions of those local highs and lows (ABC and 2B)
3. Define the local range of ABC and B

Disclaimer: This indicator is only for research purposes. Please do not take it as investing or trading advice.
Trend AnalysisWilliams Fractal

Skrip sumber terbuka

Dalam semangat sebenar TradingView, penulis telah menerbitkan kod Pine ini sebagai sumber terbuka supaya pedagang dapat memahami dan mengesahkannya. Sorakan kepada penulis! Anda boleh menggunakan perpustakaan ini secara percuma, tetapi penggunaan semula kod dalam penerbitan ini adalah dikawal oleh Peraturan dalaman. Anda boleh menyukainya untuk menggunakannya pada carta.

Ingin menggunakan skrip ini pada carta?

Penafian