OPEN-SOURCE SCRIPT
Aggiornato The Dragons Maw [inspired by Kioseff Trading]
The Dragon's Maw is a playful visualization tool that uses Monte Carlo simulation to create a dragon-like pattern on your chart. Although primarily intended for entertainment, it is also suitable for testing or falsifying the utility of this method's predictions.
What It Does:
- Generates multiple price path simulations that form the shape of a "fire-breathing" effect
- Shows upper and lower boundaries of all simulations as the dragon's "maw"
- Displays the dragon's "eye" and "ear" as a visual indicator of the historical data used
How It Works:
1. The indicator calculates returns from historical price data
2. Using Monte Carlo simulation with either normal distribution or bootstrap sampling, it generates multiple potential price paths
3. These paths are rendered with high transparency to create a fire/smoke effect showing the higher probability regions as denser color
4. It can be observed that the direction of the "fire" is influenced by recent price movement especially when set in relation to the "eye" position which indicates the limit of historical data used for the simulation
Educational Value:
Use the 'Move to the Left' parameter to position the dragon's head at different points in historical data. This feature serves as an excellent demonstration of the limitations of statistical price projections – you'll quickly see how the simulated paths diverge from what actually happened, highlighting why such projections should not be relied upon for trading decisions.
You might find, that it's not at all capable of 'predicting' sudden price movements but rather 'predicts' a continuation of the recent trend.
Features:
- Adjustable number of simulations (affects detail of the "fire" effect)
- Moveable dragon head (can be positioned at different points in price history)
- Customizable colors for the maw boundaries and fire effect
- Optional scale display for price levels
Note: This indicator is inspired by KioseffTrading's original work, with added features for visualization and positioning. While it uses statistical methods, it should be viewed as an artistic interpretation of price movement rather than a predictive tool.
Settings Guide:
- Upper/Lower Limit: Colors for the dragon's maw boundaries
- Fire Color: Color and transparency of the simulation paths
- Look Back: How far back to calculate the dragon's eye position
- Much Fire: Controls the density of simulation paths
- Length: Determines how far forward the simulation extends
The chart shows a clean view of the indicator's output, with the dragon's eye (o), ear, maw boundaries, and fire effect clearly visible on the right side of the chart by default.
What It Does:
- Generates multiple price path simulations that form the shape of a "fire-breathing" effect
- Shows upper and lower boundaries of all simulations as the dragon's "maw"
- Displays the dragon's "eye" and "ear" as a visual indicator of the historical data used
How It Works:
1. The indicator calculates returns from historical price data
2. Using Monte Carlo simulation with either normal distribution or bootstrap sampling, it generates multiple potential price paths
3. These paths are rendered with high transparency to create a fire/smoke effect showing the higher probability regions as denser color
4. It can be observed that the direction of the "fire" is influenced by recent price movement especially when set in relation to the "eye" position which indicates the limit of historical data used for the simulation
Educational Value:
Use the 'Move to the Left' parameter to position the dragon's head at different points in historical data. This feature serves as an excellent demonstration of the limitations of statistical price projections – you'll quickly see how the simulated paths diverge from what actually happened, highlighting why such projections should not be relied upon for trading decisions.
You might find, that it's not at all capable of 'predicting' sudden price movements but rather 'predicts' a continuation of the recent trend.
Features:
- Adjustable number of simulations (affects detail of the "fire" effect)
- Moveable dragon head (can be positioned at different points in price history)
- Customizable colors for the maw boundaries and fire effect
- Optional scale display for price levels
Note: This indicator is inspired by KioseffTrading's original work, with added features for visualization and positioning. While it uses statistical methods, it should be viewed as an artistic interpretation of price movement rather than a predictive tool.
Settings Guide:
- Upper/Lower Limit: Colors for the dragon's maw boundaries
- Fire Color: Color and transparency of the simulation paths
- Look Back: How far back to calculate the dragon's eye position
- Much Fire: Controls the density of simulation paths
- Length: Determines how far forward the simulation extends
The chart shows a clean view of the indicator's output, with the dragon's eye (o), ear, maw boundaries, and fire effect clearly visible on the right side of the chart by default.
Note di rilascio
The Dragon's Maw is a playful visualization tool that uses Monte Carlo simulation to create a dragon-like pattern on your chart. Although primarily intended for entertainment, it is also suitable for testing or falsifying the utility of this method's predictions.What It Does:
- Generates multiple price path simulations that form the shape of a "fire-breathing" effect
- Shows upper and lower boundaries of all simulations as the dragon's "maw"
- Displays the dragon's "eye" and "ear" as a visual indicator of the historical data used
How It Works:
1. The indicator calculates returns from historical price data
2. Using Monte Carlo simulation with either normal distribution or bootstrap sampling, it generates multiple potential price paths
3. These paths are rendered with high transparency to create a fire/smoke effect showing the higher probability regions as denser color
4. It can be observed that the direction of the "fire" is influenced by recent price movement especially when set in relation to the "eye" position which indicates the limit of historical data used for the simulation
Educational Value:
Use the 'Move to the Left' parameter to position the dragon's head at different points in historical data. This feature serves as an excellent demonstration of the limitations of statistical price projections – you'll quickly see how the simulated paths diverge from what actually happened, highlighting why such projections should not be relied upon for trading decisions.
You might find, that it's not at all capable of 'predicting' sudden price movements but rather 'predicts' a continuation of the recent trend.
Features:
- Adjustable number of simulations (affects detail of the "fire" effect)
- Moveable dragon head (can be positioned at different points in price history)
- Customizable colors for the maw boundaries and fire effect
- Optional scale display for price levels
Note: This indicator is inspired by KioseffTrading's original work, with added features for visualization and positioning. While it uses statistical methods, it should be viewed as an artistic interpretation of price movement rather than a predictive tool.
Settings Guide:
- Upper/Lower Limit: Colors for the dragon's maw boundaries
- Fire Color: Color and transparency of the simulation paths
- Look Back: How far back to calculate the dragon's eye position
- Much Fire: Controls the density of simulation paths
- Length: Determines how far forward the simulation extends
The chart shows a view of the indicator's output, with the dragon's eye (o), ear, maw boundaries, and fire effect clearly visible on the right side of the chart by default.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Per un accesso rapido a un grafico, aggiungi questo script ai tuoi preferiti: per saperne di più clicca qui.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Per un accesso rapido a un grafico, aggiungi questo script ai tuoi preferiti: per saperne di più clicca qui.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.