This tool is to visualize the distribution of gap % sizes, i.e. those things that I marked on the main chart. The tool uses the entire history of an instrument.
The detalization depends on the Binning Step parameter. The lower chart timeframe the lower that step should be.
Great...This proves the prices are normally distributed....eventuallly.....and central limit theorem works and Z Score could be used to predict outcome...Great job...only a true statistician would admire this...
lejmer
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@virenchocha, It does not prove returns are gaussian. If anything, they fit Laplace way better. CLT does not hold. This has been proven many times and if he plotted a normal distribution fitted to the data on the same chart, you would see that here as well.
cyberspider789
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@lejmer, Thanks for comment. I believe CLT has been proven to hold despite type of underlying distribution provided n(sample size) is adequately. No disregard for your personal belief though.
Can you suggest Laplace/Laplacian/Delta/Curl based indicator or strategy you came across ? I believe Elder's noise reduction just holds fantastic if one has engineering background and appreciate signal-to-noise theory etc. I am looking for some one who can work on Zigler-Nicholas based PID tunning methodology to capture and react to market noise. Suggestions ?