Probability Grid to Predict Turning Point
In trading, turning point prediction is the goal of many trading strategy. For example, Fibonacci trading, Support and resistance trading, Harmonic Pattern, Elliott Wave pattern and X3 Pattern are concerning the prediction of turning point. Because the turning point prediction provides the most usable profitable range in our trading, this is inevitably popular trading strategy among trader.
Check the Turning Point and Trend article in supporting this trading idea.
In spite of fact that there are many trading strategy uses turning point prediction, there are none of trading techniques providing the exact account of each turning point in probability.
Fractal Pattern Scanner is designed to predict the next turning point with probability measurement. Hence, this Fractal Pattern Scanner can be used together or on its own.
Here, we will briefly look at the Probability Grid provided from Fractal Pattern Scanner. This Probability Grid consists of Y and X axis. The vertical measurement provide the probability of turning point in price. The horizontal measurement provides the probability of turning point in time.
The probability measurement is taken from the start of peak or trough to predict next turning point. Hence, the probability increase from bottom to top for price and left to right for time.
For easy measurement, we provide 50%, 60%, 70%, 80%, 90% and 95% probability in price and time.