#### praveen.poonia

##### New member

The author states:

This is an indicator that combines RSI and Stochastics with probability levels.

How it works?

This works by applying a regression based analysis on both Stochastics and RSI to attempt to predict a likely close price of the stock.

It also assesses the normal distribution range the stock is trading in. With this information, it does the following:

2 lines are plotted:

Yellow line: This is the stochastic line. This represents the smoothed version of the stochastic price prediction of the most likely close price.

White Line: This is the RSI line. It represents the smoothed version of the RSI price prediction of the most likely close price.

When the Yellow Line (Stochastic Line) crosses over the White Line (the RSI line), this is a bearish indication. It will signal a bearish cross (red arrow) to signal that some selling or pullback may follow.

IF this bearish cross happens while the stock is trading in a low probability upper zone (anything 13% or less), it will trigger a label to print with a pullback price. The pullback price is the "regression to the mean" assumption price. Its the current mean at the time of the bearish cross.

The inverse is true if it is a bullish cross. If the stock has a bullish cross and is trading in a low probability bearish range, it will print the price target for a regression back to the upward mean.

@samer800 or someone Just wondering if you can convert this?

https://www.tradingview.com/script/...tic-Probability-Based-Price-Target-Indicator/

This is an indicator that combines RSI and Stochastics with probability levels.

How it works?

This works by applying a regression based analysis on both Stochastics and RSI to attempt to predict a likely close price of the stock.

It also assesses the normal distribution range the stock is trading in. With this information, it does the following:

2 lines are plotted:

Yellow line: This is the stochastic line. This represents the smoothed version of the stochastic price prediction of the most likely close price.

White Line: This is the RSI line. It represents the smoothed version of the RSI price prediction of the most likely close price.

When the Yellow Line (Stochastic Line) crosses over the White Line (the RSI line), this is a bearish indication. It will signal a bearish cross (red arrow) to signal that some selling or pullback may follow.

IF this bearish cross happens while the stock is trading in a low probability upper zone (anything 13% or less), it will trigger a label to print with a pullback price. The pullback price is the "regression to the mean" assumption price. Its the current mean at the time of the bearish cross.

The inverse is true if it is a bullish cross. If the stock has a bullish cross and is trading in a low probability bearish range, it will print the price target for a regression back to the upward mean.

@samer800 or someone Just wondering if you can convert this?

https://www.tradingview.com/script/...tic-Probability-Based-Price-Target-Indicator/

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