Description
Overview
QuantZone is not a traditional entry-signal indicator. Instead, it helps you step back and evaluate what truly matters:
Is this trade statistically worth taking?
Does the current price zone actually offer an edge?
Rather than relying on setups that simply “look strong”, QuantZone shifts your decision-making toward measurable criteria.
Every trade is evaluated through the relationship between risk, reward, and probability. This means you are no longer thinking: “This setup looks good”.
But instead: “If I risk X, what is the probability of reaching target Y?”
How QuantZone works
QuantZone converts raw price movement into a structured statistical framework.
Each swing is treated as a repeatable data sample. Over time, these samples form a distribution of how price typically behaves.
For every sample, 2 key metrics are measured:
- MAE (Maximum Adverse Excursion): how far price moves against you
- MFE (Maximum Favorable Excursion): how far price moves in your favor
These measurements define the relationship between risk and potential reward.
From this, QuantZone applies the Joint Probability Model to calculate the probability of a trade reaching a defined target under a given risk constraint:
Pwin = P( F ≥ MFE ∩ A ≤ MAE )
In practice, this reframes trade evaluation into a simple question: “If risk is capped at X, what is the probability of achieving target Y?”
What you see on the chart with QuantZone
Probability Zones
QuantZone highlights Probability Zones – price areas where historical data indicates a higher likelihood of favorable outcomes.
These zones are derived from statistical analysis of how price has behaved under similar conditions.
When price enters a Probability Zone, it signals that the current location aligns with conditions that have historically offered a more favorable risk–reward profile.
Statistical Stop Loss & Target Levels
QuantZone provides stop loss and target levels based on actual price behavior, not fixed rules or assumptions.
- Using MAE (Maximum Adverse Excursion), it estimates how far price typically moves against a position – helping define a realistic stop loss.
- Using MFE (Maximum Favorable Excursion), it measures how far price tends to move when the setup works – guiding target placement.
This ensures that both risk and reward levels are grounded in statistical data, not arbitrary placement.
Entry Signals and Key Levels
When price enters an effective Probability Zone, clear markers appear to highlight potential trade locations in real time.
These entry markers are not standalone signals, but contextual triggers – appearing only when price aligns with statistically favorable conditions.
At the same time, key price levels are identified where the market is likely to react. These levels are derived from historical Probability Zones and often act as potential support or resistance.
Together, they help track when price reaches a meaningful location and how it is likely to behave from there.
Structural and historical references
Additional visual references provide context for interpreting current price action:
- Trend Swing Points: mark key swings within the trend, helping define range boundaries and assess overall structure
- Historical Climax Zones: highlight zones formed from prior Probability Zones, indicating areas of past liquidity and likely market reactions.
- Past MAE References: display historical adverse movement, offering insight into typical drawdown and the consistency of prior setups
Control Panel
A compact control panel provides quick access to key data and tools directly on the chart.
From here, you can easily open:
- Probability Table: displays the probability of reaching specific targets under defined risk levels, along with the associated risk–reward profile
- Distribution Chart: visualizes how price movements are distributed, helping identify common ranges, extreme zones, and overall data structure
This keeps essential information within reach, allowing you to evaluate trades without leaving your chart.
Probability Modes: Gaussian & Percentile
QuantZone provides 2 modes for evaluating probability, allowing you to adapt your analysis to different market conditions:
- Gaussian Mode: Applies smoothing to reduce the impact of extreme moves, helping establish a stable baseline for stop loss and target placement.
- Percentile Mode: Uses raw, unsmoothed data to reflect current market behavior, helping adapt quickly to changing conditions and volatility.
By comparing both modes, you can balance typical expectations with real-time market dynamics and adjust your decisions accordingly.
Flexible observation samples
You can also customize how market movements are sampled and evaluated.
By default, moving averages are used to define trend and structure, but additional indicators can be incorporated as inputs to better align the analysis with your trading approach.
