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AIS Smoothing Stable Distribution MT5

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Stable distributions can be used to smooth financial series. Since to calculate the distribution parameters, you can
if you use a fairly deep background, then such smoothing, in some cases, may be even more effective for
compared to other methods.
The figure shows an example of the distribution of the opening prices of the currency pair “EUR-USD” on the H1 time frame for
ten years (Figure 1). It looks fascinating, doesn’t it?

The main idea behind this indicator is to determine the parameters of a steady state based on the spread of prices.
distribution, and then use the resulting data to smooth out the financial series. Thanks to this approach, the smoothed
the values will tend to the most likely value of the price in a given market situation.

The main idea behind this indicator is to determine the parameters of a steady state based on the spread of prices.
distribution, and then use the resulting data to smooth out the financial series. Thanks to this approach, the smoothed
the values will tend to the most likely value of the price in a given market situation.

The indicator operation is configured using the LB parameter. Its value determines the length of the smoothed object.
the number of rows expressed in bars. And the allowed value is in the range of 1-255.

[spoiler title=”Read More…”]

The blue line shows the smoothed price value of High, the red line shows Low, and the green line shows the smoothed price value.
the line corresponds to the prices 

Close.

The blue line shows the smoothed price value of High, the red line shows Low, and the green line shows the smoothed price value.
the line corresponds to the prices 

Close.

The main disadvantage of this indicator is that it is impossible to set the width of the smoothing window so that the indicator works properly.
equally stable in all parts of history. Therefore, the trader must choose the parameters himself, according to his specific requirements.

[/spoiler]

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