# PDFma – indicator for MetaTrader 5

• Currency pairs: Any pairs, indices and metals
• Trading Time: Around the clock
• Recommended broker: icmarkets, XM
• In short, this is a kind of weighted average (or a digital filter, depends how somebody prefers to call it) that is using probability density function to calculate the coefficients and the average. The short description of PDF is :

In probability theory, a probability density function (PDF), or density of a continuous random variable, is a function, whose value at any given sample (or point) in the sample space (the set of possible values taken by the random variable) can be interpreted as providing a relative likelihood that the value of the random variable would equal that sample. In other words, while the absolute likelihood
for a continuous random variable to take on any particular value is 0
(since there are an infinite set of possible values to begin with), the
value of the PDF at two different samples can be used to infer that, in
any particular draw of the random variable, how much more likely it is
that the random variable would equal one sample compared to the other
sample.

Indicator has the usual set of options – 3 types of levels :

• floating
• quantile
• or no levels (when it switches to “on slope” mode)

• on outer levels cross
• on middle levels cross
• on slope change

It uses the usual set of prices + heiken ashi prices and i multi time frame already. What might be obscure are the variance and mean parameter.

In general both are affecting the “speed” of the PDFma. Variance can be used in a range from 0 to 1. the smaller the variance the “faster” (and less smooth) the PDFma is (lower example is using variance 1 for the green value and variance 0.5 for orange value).

Mean is doing similar, except it uses values in a range from -1 to 1. Lower example green is using mean value of 1 and the orange is using mean -1. In any case there is a plenty of room for experimenting with this type of filter/average.

• How to install MT5 indicator?
• 1. On the desktop, double-click to open the MT45 trading platform software you installed.
• 2. Click on “File” in the upper left corner – “Open Data Folder”, double-click the MQL5 folder, and double-click the Indicators folder
• 3. Copy the metrics you need to install to the Indicators folder
• 4. Open MT5, find “Navigator” in the display menu, then click “Technical Indicators” of “Navigator” and right click to refresh, you will see the indicator just copied.
• 5. In the “Technical Indicators” of “Navigator”, find the indicator file just installed, double click or click manually to the chart window
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