Anomaly Detector

Price Anomaly Detector

This is a script designed to identify unusual price movements. By analyzing deviations from typical price behavior, this tool helps traders spot potential trading opportunities and manage risks effectively.

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Features

- Anomaly Detection: Flags price points that significantly deviate from the average.
- Visual Indicators: Highlights anomalies with background colors and cross markers.
- Customizable Settings: Adjust sensitivity and window size to match your trading strategy.
- Real-Time Analysis: Continuously updates anomaly signals as new data is received.

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Usage

After adding the indicator to your chart:

1. View Anomalies: Red backgrounds and cross markers indicate detected anomalies.
2. Adjust Settings: Modify the `StdDev Threshold` and `Window Length` to change detection sensitivity.
3. Interpret Signals:
- Red Background: Anomaly detected on that bar.
- Red Cross: Specific point of anomaly.

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Inputs

- StdDev Threshold: Higher values reduce anomaly sensitivity. Default: 2.0.
- Window Length: Larger windows smooth data, reducing false positives. Default: 20.

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Limitations

- Approximation Method: Uses a simple method to detect anomalies, which may not capture all types of unusual price movements.
- Performance: Extremely large window sizes may impact script performance.
- Segment Detection: Does not group consecutive anomalies into segments.

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Disclaimer: This tool is for educational purposes only. Trading involves risk, and you should perform your own analysis before making decisions. The author is not liable for any losses incurred.