PDFma - MetaTrader 5 Script | Trading Script Download - MT4/MT5 Resources - MetaTrader 5 Resources

Simply put, it's a weighted average (or digital filter, depending on how one likes to call it) that uses a probability density function to calculate coefficients and averages. A short description of the PDF is:

In probability theory , a probability density function ( PDF ), or the density of a continuous random variable , is a function whose value at any given sample (or point) in the sample space (the set of possible values ​​a random variable can take) can be interpreted as providing the relative likelihood that the value of the random variable will be equal to that sample. In other words, while the absolute likelihood that a continuous random variable will take any particular value is 0 (because there are an infinite set of possible values ​​to begin with), the PDF values ​​for two different samples can be used to infer, for any particular draw of the random variable, how likely it is that the random variable will be equal to one sample compared to the other sample.

More information here: https://en.wikipedia.org/wiki/Probability_density_function

The indicator has the usual set of options - 3 types of levels:

Color (and alert) selection:

It already uses the usual set of prices + heiken ashi prices and multiple time frames.

Perhaps more ambiguous are the variance and mean parameters.

Generally speaking, both affect the "speed" of PDFma. Variance can be used in the range 0 to 1. The smaller the variance, the "faster" (and less smooth) PDFma is (the example below uses a variance of 1 for green values ​​and a variance of 0.5 for orange values).

Mean works similarly, except that it uses values ​​in the range -1 to 1. The example below uses an average of 1 for green and -1 for orange.

Anyway, there's plenty of room to try this type of filtering/averaging.

Attachment download

📎 pdfma.mq5 (38.06 KB)

Source: MQL5 #17188