Probability of Trend Continuation

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This script give the probability that the current trend will continue using price and volume information.

When the probability line (green/red) is above this line, it indicates a higher chance of the current trend continuing while below 50% the trend is less likely to continue.

The probability line (green/red) will typically follow the strength of the current trend:

1. Rising with the Trend:
As the trend strengthens—whether it's an uptrend (green line) or downtrend (red line)—the probability line rises. This shows that the current trend has a higher chance of continuing.

2. Falling as the Trend Weakens:
When the trend begins to lose momentum, the probability line gradually falls. This decline signals that the strength of the current trend is diminishing, and there's a lower chance it will continue.

3. Reversing on Trend Pivots:
If the market pivots and begins to move in the opposite direction, the probability line will also reverse. For example:
- During a bullish uptrend (green line), if the market turns bearish, the line will start to fall and eventually switch to red as the new trend takes hold.
- Conversely, during a bearish downtrend (red line), if a bullish reversal occurs, the line will rise and turn green as the trend shifts upward.

4. Cyclical Behavior:
This pattern tends to repeat in cycles. The probability line rises as trends strengthen, falls when they lose power, and reverses upward when a new trend begins. If the trend continues to strengthen, the line will rise again; if the trend pivots, the line increases to reflect the new direction.

So, you’ll see the line gradually lower when a trend weakens and then either continue to increase with the trend or pivot upward to signal a reversal and the emergence of a new trend.

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Note di rilascio

This script give the probability that the current trend will continue using price and volume information.

When the probability line (green/red) is above this line, it indicates a higher chance of the current trend continuing while below 50% the trend is less likely to continue.

The probability line (green/red) will typically follow the strength of the current trend:

1. Rising with the Trend:
As the trend strengthens—whether it's an uptrend (green line) or downtrend (red line)—the probability line rises. This shows that the current trend has a higher chance of continuing.

2. Falling as the Trend Weakens:
When the trend begins to lose momentum, the probability line gradually falls. This decline signals that the strength of the current trend is diminishing, and there's a lower chance it will continue.

3. Reversing on Trend Pivots:
If the market pivots and begins to move in the opposite direction, the probability line will also reverse. For example:
- During a bullish uptrend (green line), if the market turns bearish, the line will start to fall and eventually switch to red as the new trend takes hold.
- Conversely, during a bearish downtrend (red line), if a bullish reversal occurs, the line will rise and turn green as the trend shifts upward.

4. Cyclical Behavior:
This pattern tends to repeat in cycles. The probability line rises as trends strengthen, falls when they lose power, and reverses upward when a new trend begins. If the trend continues to strengthen, the line will rise again; if the trend pivots, the line increases to reflect the new direction.

So, you’ll see the line gradually lower when a trend weakens and then either continue to increase with the trend or pivot upward to signal a reversal and the emergence of a new trend.