Overview
The Monte Carlo + Naive Bayes Forecast indicator combines statistical simulation with machine learning to estimate future price movement and market probability. Instead of relying on a single prediction, it generates hundreds of simulated price paths while simultaneously calculating bullish and bearish probabilities using a Naive Bayes model.
🚀 Features
📈 Monte Carlo Price Forecast
Simulates hundreds of possible future price paths.
Displays 5 probability bands (95%, 75%, Median, 25%, 5%).
Visualizes likely future market ranges.
🧠 Naive Bayes AI Analysis
Calculates the probability of bullish vs bearish continuation.
Uses Relative Volume and Momentum (ROC) as predictive features.
Continuously adapts using historical market behavior.
🎯 Trading Signal
LONG signal when bullish probability exceeds 50%.
SHORT signal when bearish probability dominates.
Includes confidence assessment (High / Moderate).
📊 Information Panel
✅ Win Probability (%)
✅ Monte Carlo Median Target
✅ Relative Volume
✅ Current Signal
✅ Confidence Level
📌 How It Works
Collects historical log returns.
Generates hundreds of Monte Carlo simulations based on historical volatility.
Computes future probability bands.
Applies a Gaussian Naive Bayes classifier using market momentum and relative volume.
Produces a probabilistic LONG or SHORT signal with confidence estimation.
💡 Best Used For
📈 Swing Trading
⚡ Day Trading
📊 Trend Confirmation
🎯 Probability-Based Decision Making
📉 Risk Assessment
✅ Advantages
Combines Machine Learning with Statistical Forecasting
Visual probability bands instead of fixed targets
Objective LONG/SHORT signals
Easy-to-read dashboard
Fully customizable simulation and training parameters
This indicator is designed for traders who prefer probability-based analysis over traditional deterministic indicators, helping identify likely market scenarios rather than predicting a single fixed outcome.
Specifications
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