Limits & Deviations analisys Overview – tutorial

For the modern trader who relies on data and statistics, MetricAlgo introduces an analytical dashboard for in-depth investigation of limits and deviations of securities. Our “Limits & Deviations Analysis Dashboard” is an essential resource that provides a comprehensive and detailed overview of the key parameters that govern price dynamics. Below, a technical exploration of the key features of this tool.

Panel Capabilities: An Overview

The panel aims to provide an immediate overview of the key data related to the limits and deviations of a historical financial data series, filtered to maximize relevance and accuracy.

The Four Pillars of the Panel

1. Limits Calculator: This tool allows users to calculate price limits based on specific historical probabilities, providing essential guidance for setting trading parameters such as stop loss and take profit.
2. Extreme Limits: Identifies the maximum recorded deviations, both positive and negative, providing insights into the most volatile events.
3. Mean Limits: The average of all the maximum and minimum values in a series provides a balanced view of market behavior over a given period.
4. Current Price Levels: Shows the price levels associated with the main deviation percentages, essential for evaluating current volatility and potential support or resistance zones.

Extremes and Means: Data Interpretation

Extreme limits, which indicate the greatest price fluctuations, are contrasted with the mean of limits, which provides a more stable and representative measure of price fluctuations. These two parameters together provide a balanced understanding of the trend of an asset.

Percentage Analysis and Price Levels

The dashboard reveals the price levels required to exceed the chosen percentages of historical candles. For example, it can be observed that to exceed 70% of historical cases, the price must deviate by 1.57% from the opening of the period. These percentage values are essential for understanding and predicting market behavior.

Statistical Counters: Trend Evaluation

Counters show the frequency of positive or negative closes and opens, along with the corresponding averages. These data are vital for identifying prevailing trends and can serve as indicators for short-term trading strategies.

evel Calculator: Fine-tune Your Strategy

Through the integrated selector or manual entry, users can determine the price levels associated with a chosen probability. By selecting, for example, 90%, you can identify price boundaries that 90% of candles have not exceeded, allowing you to fine-tune entry and exit strategies.

Conclusion

Our Limits & Deviations Analysis Panel was developed to provide traders with the tools for a deep understanding of market movements. Through a clear interface and detailed metrics, MetricAlgo supports your technical analysis with reliable and easy-to-interpret data. We invite all users to explore this feature, an integral part of your analytical arsenal on MetricAlgo.