Note: this indicator does not draw the pivot point lines, so all purchases of Pivot Probabilities comes included with access to Wayne's Pivots Pro.
Once probabilities for the current and next period (week, month) are selected, we can select what OHLC data to analyze.
Below we'll look at using High data to find likely tops.
The red boxes are the probability histogram, and the size of each box is proportional to the probability of an event occurring. The orange dotted line is the Probability Weighted Pivot (PWP). We can see January's PWP and February's. The PWP is an average, and works like the mean of the probability histogram. When using High data, we are going back in time, checking every January's highest high, finding what two pivot points it's between, and then creating the probability histogram and PWP after taking every year into account.
The Probability Dashboard can be seen to the bottom left. The green and red lit cells on the dashboard are a simple way of identifying the historical performance of a pivot point trade setup. Green means that a setup at least has 2 to 1, risk to reward odds. Red means that there is less than 1 to 1 odds. Yellow is shown when the risk to reward odds are between 1 and 2.
Location on the chart, size, columns, rows, and colors of the dashboard is fully customizable. Here is a breakdown of all the statistics in the dashboard: