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@@ -13,9 +13,7 @@
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| **PineScript** | [entropy.pine](entropy.pine) |
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- Shannon Entropy measures the unpredictability or randomness of a time series over a sliding window.
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- Parameterized by `period`.
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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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- **Similar:** [Hurst](../hurst/Hurst.md), [StdDev](../stddev/StdDev.md) | **Trading note:** Shannon entropy; measures information content and randomness. High entropy = unpredictable market.
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- Validated against TA-Lib, Skender, and Tulip reference implementations where available.
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Shannon Entropy measures the unpredictability or randomness of a time series over a sliding window. A low entropy value indicates the series is highly predictable (clustered values), while a high entropy value indicates the data is spread uniformly across its range — maximum randomness.
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@@ -108,4 +106,4 @@ var series = Entropy.Batch(source, period: 14);
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// Span mode
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Entropy.Batch(inputSpan, outputSpan, period: 14);
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```
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```
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