The analyzer defines support/resistance levels and potential trend reversal points quickly and accurately. Calculated mean-square deviation of a quote movement on a user-defined segment is used for analysis. The most likely trend reversal points are defined, and recommendations in the form of horizontal colored lines are displayed.
- The probability of a quote moving from the blue line to any of the green ones is >34%;
- From the green line to the yellow one - about 13%;
- From the yellow line to the red one - 0,13%;
- The probability of a quote being within the range between the green lines - almost 68%;
- Between the yellow ones - more than 97%;
- In 65-70% of cases, the quote bounces off the green lines in the direction of the blue one;
- In 97% of cases, the trend changes when reaching the yellow line and bounces to the blue one;
- The price almost never reaches the red line. However, if the yellow one is breached, the reversal is about to occur with the probability of 146%.
It turns out that it is possible to trade large volumes with a considerable statistical advantage. Stop levels are also predicted quite efficiently. The lines are redrawn and only valid for 3-5 candles of the selected timeframe. In other words, if you analyze daily charts, the levels are valid for the next few days. The levels are changed when the market is moving.