This is a future predictor based on so called backward WPR. The indicator calculates conditional probability of conversions between WPR and backward WPR values on available quotes history. Then it estimates future price movement using these probabilities and latest WPR readings.
The backward WPR is nothing special except that it's counted from right to left, i.e. from the future to the past. The main advantage of the backward WPR is that it knows the future and its values are always optimal for trading. The only thing we need to use it on practice - bind it with standard WPR, which is achieved by statistical analysis of the history.
When placed on a chart, the indicator displays backward WPR predictions for period latest bars. Actually it shows 5 most probable levels. Their meaning is standard: levels at the top indicate overbought state and suggest selling; while levels at the bottom indicate oversold state and suggest buying.
For your convenience the indicator shows a label with overall signal direction calculated from the predicted levels on the latest bar.
- period - base period for calculation of WPR; default - 24;
- repeat - number of periods to process, including the base period; each next period is calculated as previous period multiplied by 2; default - 5, which means that periods 24, 48, 96, 192, 384 will be used; NB: when the number is too large, you may get no prediction at all, because probabilities for long periods can't be calculated; you should make sure that the largest period fits into available number of bars many times to gather decent statistics;
- base - base color for lines; default - lime;