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@@ -13,9 +13,7 @@
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| **PineScript** | [binomdist.pine](binomdist.pine) |
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- BINOMDIST computes the cumulative distribution function of the Binomial distribution, mapping a min-max normalized price to a success probability $...
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- Parameterized by `period` (default 50), `trials` (default 20), `threshold` (default 10).
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- Output range: Varies (see docs).
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- Requires `period` bars of warmup before first valid output (IsHot = true).
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- **Trading note:** Binomial distribution; models success/failure sequences. Win streak probability in trading.
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- Validated against TA-Lib, Skender, and Tulip reference implementations where available.
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BINOMDIST computes the cumulative distribution function of the Binomial distribution, mapping a min-max normalized price to a success probability $p$ and evaluating $P(X \leq k)$ for $X \sim \text{Binomial}(n, p)$. The normalized price position within its lookback range determines the probability of success per trial, while the trial count $n$ and threshold $k$ control the shape of the CDF response. The output is a $[0, 1]$ bounded oscillator where values near 0 indicate the price-derived probability makes $k$ or fewer successes very unlikely (bullish pressure), and values near 1 indicate $k$ successes are very likely (established range).
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@@ -86,4 +84,4 @@ PMF batch can use SVML exp vectorization. CDF must remain scalar.
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- Bernoulli, J. (1713). *Ars Conjectandi*
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- Press, W. et al. (2007). *Numerical Recipes*, 3rd ed., §6.2 (Incomplete Beta as alternative)
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- PineScript reference: [`binomdist.pine`](binomdist.pine)
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- PineScript reference: [`binomdist.pine`](binomdist.pine)
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