ProbBetween (Function)
DisclaimerThe ProbBetween function returns the probability that price will be within the range specified by Low and High target prices. This function is designed primarily for use with Probability Maps.
Syntax
ProbBetween(LowTarget, HighTarget, CurrentPrice, VoltyVal, BarsToGo)
Parameters
|
Name |
Type |
Description |
|
LowTarget |
Numeric |
Sets the low-end price target. |
|
HighTarget |
Numeric |
Sets the high-end price target.. |
|
CurrentPrice |
Numeric |
Sets the price to be tested against the target price. |
|
VoltyVal |
Numeric |
Sets the annualized volatility of the symbol being tested. |
|
BarsToGo |
Numeric |
Sets the number of bars in the future to consider when evaluating the probability of being between the price targets. |
Returns (Double)
A numeric value containing the probability that price will be within the range specified by LowTarget and HighTarget.
Remarks
ProbBetween is used to determine the likelihood of price staying within a range. Conversely, if Probability Between returns 25%, it can be concluded that there is a 75% chance that price will move outside of the specified range on the specified future date.
ProbBetween calculates the probability of price being within a specified price range at a particular point in the future, given the current price, volatility and time remaining in bars.
Example
Assigns to Value1 the chance that the symbol, which is currently trading at 105, will be trading between 100 and 110 in exactly 30 bars into the future:
Value1 = ProbBetween(110, 100, 105, .50, 30);
The above example returns a value of .2605 (representing a 25.05% probability).