Quantile Statistical Levels [keypoems]

Overview:

The Quantile Statistical Levels Indicator is designed to enhance intra-day trading strategies by leveraging statistical analysis of historical price movements.

The indicator is based on the principle that HTF (higher time-frame ) candles typically follow a pattern of:
1. Accumulation
2. Manipulation (can be modelled as the wick of the candle)
3. Expansion (the main price move)



A well-known trading technique involves buying within the wick of a bullish HTF candle, below its opening price, expecting an expansion of the current HTF candle (reverse for bearish). This indicator surfaces weeks of work on statistical distributions measuring the average length of the "manipulation" wicks of HTF candles, based on extensive historical data across multiple assets.

Features:

Statistical Quantile Manipulation and Expansion Levels:

This indicator marks Quantile Manipulation (and respective Expansion) levels that can help a trader gauge the shape of the currently developing HTF candle while looking at a a lower timeframe chart.

Q1 (First Quartile): statistically is a level touched 3 out of 4 times (75% of the time).
Median (Q2): it is a price threshold touched 50% of the time.
Q3 (Third Quartile): it is surpassed only 1 in 4 times (25% of the time), indicating significant price movement beyond this level is generally less common.

Warning Bands

The indicator also provides Warning Bands, these bands visually alert traders when the current price action is in a "Manipulation Zone" contrary to their intended trading bias. For instance, if a trader is looking to go long but the price is in the Manipulation Zone for shorts, this could signal a potential trap or a need for caution.

More precise levels can be optionally activated in the options for specific markets (currently NQ).