OPEN-SOURCE SCRIPT
Updated Pattern Recognition Probabilities [racer8]
Brief 🌟
Pattern Recognition Probabilities (PRP) is a REALLY smart indicator. It uses the correlation coefficient formula to determine if the current set of bars resembles that of past patterns. It counts the number of times the current pattern has occurred in the past and looks at how it performed historically to determine the probability of an up move, down move, or neutral move.
I'd like to say, I'm proud of this indicator 😆🤙 This is the SMARTEST indicator I have ever made 🧠🧠🧠
Note: PRP doesn't give you actual probabilities, but gives you instead the historical occurrences of up, down, and neutral moves that resulted after the pattern. So you can calculate probabilities based on these valuable statistics. So for example, PRP can tell you this pattern has historically resulted in 55 up moves, 20 down moves, and 60 neutral moves.
Parameters 🌟
You can adjust the Pattern length, Minimum correlation, Statistics lookback, Exit after time, and Atr multiplier parameters.
Pattern length - determines how long the pattern is
Minimum correlation - determines the minimum correlation coefficient needed to pass as a similiar enough pattern.
Statistics lookback - lookback period for gathering all the patterns in the past.
Exit after time - determines when exit occurred (number of periods after pattern) ; is the point that represents the pattern's result.
Atr multiplier - determines minimum atr move needed to qualify whether result was an up/down move or a neutral move. If a particular historical pattern resulted in a move that was less than the min atr, then it is recorded as a neutral move in the statistics.
Thanks for reading! 🙏
Good luck 🍀 Stay safe 😷 Drink lots of water💧
Enjoy! 🥳 and Hit the like button! 👍
Pattern Recognition Probabilities (PRP) is a REALLY smart indicator. It uses the correlation coefficient formula to determine if the current set of bars resembles that of past patterns. It counts the number of times the current pattern has occurred in the past and looks at how it performed historically to determine the probability of an up move, down move, or neutral move.
I'd like to say, I'm proud of this indicator 😆🤙 This is the SMARTEST indicator I have ever made 🧠🧠🧠
Note: PRP doesn't give you actual probabilities, but gives you instead the historical occurrences of up, down, and neutral moves that resulted after the pattern. So you can calculate probabilities based on these valuable statistics. So for example, PRP can tell you this pattern has historically resulted in 55 up moves, 20 down moves, and 60 neutral moves.
Parameters 🌟
You can adjust the Pattern length, Minimum correlation, Statistics lookback, Exit after time, and Atr multiplier parameters.
Pattern length - determines how long the pattern is
Minimum correlation - determines the minimum correlation coefficient needed to pass as a similiar enough pattern.
Statistics lookback - lookback period for gathering all the patterns in the past.
Exit after time - determines when exit occurred (number of periods after pattern) ; is the point that represents the pattern's result.
Atr multiplier - determines minimum atr move needed to qualify whether result was an up/down move or a neutral move. If a particular historical pattern resulted in a move that was less than the min atr, then it is recorded as a neutral move in the statistics.
Thanks for reading! 🙏
Good luck 🍀 Stay safe 😷 Drink lots of water💧
Enjoy! 🥳 and Hit the like button! 👍
Release Notes
After receiving feedback about how slow the script loads, I've decided to change the default parameters so that it loads faster. Enjoy ;)Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
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.