Historical Price Projection
By LuxAlgoMar 7, 2024
Historical Price Projection plots a forward price path that mimics the behavior of a historical window you choose, anchored by clicking a bar on the chart or entering a date in the settings. It is a hands-on relative of analog forecasting, but instead of an algorithm hunting for the closest match, you select the analog yourself: an accumulation phase, a distribution, a crash, any period whose rhythm you expect the market to echo. Up to 500 bars from the anchor feed the projection, and an optional growth factor layers drift on top of the raw replay.
How to Trade the Historical Price Projection?
- Growth Factor at 0: the cleanest configuration. The projection aligns tightly with the anchored period, replaying its behavior without added drift.
- Raising the Growth Factor: injects a drift percentage derived from the anchored span's returns, shifting the projection's expectancy. Anchoring an accumulation phase can tilt the path decisively higher, while drift over a weak stretch deepens the bearish case.
- The forecast area: read it as a scenario band around the projected line, not a boundary price is obliged to respect.
Long-horizon studies work too. Anchoring a historical downturn on a quarterly chart lets you visualize what a comparable decline would look like from today's prices: scenario planning rather than prophecy.
Historical Price Projection Settings
- Anchor Point: the starting bar of the source window; up to 500 bars are used.
- Growth Factor (0 to 100): how much drift influences the projected trajectory.
- Area Width (0 to 100): the breadth of the forecast zone relative to the growth factor.
- Style inputs: price line width, bullish and bearish colors, forecast-area visibility and color.
Frequently Asked Questions
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