Likelihood of Winning - Probability Density Function — Indicator by tkarolak

statistics standarddeviation pdf normaldistribution probability winning statisticalprobability statistic

In developing the "Likelihood of Winning - Probability Density Function (PDF)" indicator, my aim was to offer traders a statistical tool to quantify the probability of reaching target prices. This indicator, grounded in risk assessment principles, enables users to analyze potential outcomes based on the normal distribution, providing insights into market dynamics.

The tool's flexibility allows for customization of the data series, lookback periods, and target settings for both long and short scenarios. It features a color-coded visualization to easily distinguish between probabilities of hitting specified targets, enhancing decision-making in trading strategies.

I'm excited to share this indicator with the trading community, hoping it will enhance data-driven decision-making and offer a deeper understanding of market risks and opportunities. My goal is to continuously improve this tool based on user feedback and market evolution, contributing to more informed trading practices.

This indicator leverages the "NormalDistributionFunctions" library, enabling easy integration into other indicators or strategies. Users can readily embed advanced statistical analysis into their trading tools, fostering innovation within the Pine Script community.

Release Notes:

Removed input constraints

Release Notes:

Linked to the newer version of related library

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

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