Descriptive Statistics [Median, Quartiles, Outliers]

This indicator seeks to provide insight to traders by modeling market structure using widely accepted statistical methods applied to price data. It does not predict direction; instead, it describes how current price behaves relative to its historical distribution.

It is built around non-parametric statistics, making it resistant to distortion from extreme price movements.

What it shows?
1. Median (Q2): The central equilibrium level of price distribution.
2. Quartiles (Q1, Q3): Boundaries of the “normal” trading range.
3. Interquartile Range (IQR): Measures the width of the core market structure.
4. Outlier Bands (1.5 × IQR rule): Statistical extremes where price becomes unusual relative to recent behavior.

How it works?

The indicator collects price data either through:

1. Reset Mode: Builds a new distribution each session (Daily, Weekly, Monthly, or chart timeframe).
2. Length Mode: Uses a rolling window of the last N candles.

All values are sorted to construct a real-time price distribution, from which median, quartiles, and outlier thresholds are derived.

How to use it?
1. Price inside Q1–Q3 range → normal market conditions
2. Price near Median → equilibrium / fair value zone
3. Price outside Outlier bands → statistically extreme conditions (potential exhaustion, expansion zones or news driven events)
4. Large expansions between Q1 and Q3 → increased volatility and potential momentum in either direction

Key concept?

This tool does not forecast price. It provides a distribution map of market behavior, helping traders understand structure, deviation, and statistical positioning of price.

⚠️ Note

This indicator is for educational and analytical purposes only and should not be used as standalone trading advice.

Author: TUGUME WILLIAM MUTARA