Hello Friends,,, =================================== This indicator is based on Bayes' Theorem and is fully based on probabilities. =================================== Formula For Bayes' Theorem:
P(Bull|Bear) = P(Bear∣Bull) * P(Bull) / P(Bear)
where: Bull and Bear are events and P is probability P(Bull|Bear) is the posterior probability, the probability of Bull after taking into account Bear P(Bear∣Bull) is the conditional probability or likelihood, the degree of belief in Bear given that proposition of Bull belief (Bull true) P(Bull) is the prior probability, the probability of Bull belief P(Bear) is the prior probability, the probability of Bear belief ===================================
The indicator output one trend lines and (Bull/Bear) Signal :
Bull/Bear Probability Trend : when the price is above mid line ==> Up Trend when the price is below mid line ==> Down Trend
And by using ATR deviation multipliers, we can get (Bullish/Bearish) zones
=================================== Disclaimer: This script is for informational and educational purposes only. Use of the script does not constitutes professional and/or financial advice. You alone the sole responsibility of evaluating the script output and risks associated with the use of the script. ===================================
Very interesting. I would like to fine tune more for my symbols. Is there a way?
james27410
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Hi! I would like to use the trendline you have in the centre of this Indicator in a Strategy, I've tried to make this myself using a Volume Weighted MA but yours looks to be significantly more weighted by volume, or using some other formula.
Would you be able to share where I'm going wrong, or the code to recreate this trendline so I can use this in a strategy? I was trying to use VWMA (Length 25) - although I'm not sure yours is really an average?
Thank you so much.
arjunmanjunathc
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Tried out and found helpful for my trading stype.. Thanks buddy