Probability Oscillator (Expo)

█ Overview

The Probability Oscillator uses a Bayesian approach to measure the probability of a price movement and trend continuation. This approach considers the prior probability of a price movement and the current market conditions to identify trends, sentiment, momentum, and retracements.


█ How does the indicator work?

The Probability Oscillator is based on the idea of Bayesian probability, which is a way of using existing data to make predictions about the likelihood of an event occurring. This indicator uses the Bayesian probability model to analyze past trading activity and calculate the probability of a trend continuing. This function also considers the prior probability of a price movement and the current market conditions to analyze the likelihood of a retracement.


█ How to use

Investors can use this indicator to measure the market sentiment and the strength/direction of a trend. It does also give insights into momentum moves and retracements.


█ Indicator Customization

• The user can change the trend approaches and input source as well as adjust the overbought and oversold areas to make the calculation more sensitive to retracements.
  
• The user can change the sensitivity of the momentum function to adjust it only to identify the most significant momentum moves.
  

-----------------
Disclaimer

The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.

All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.

My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!