#twitter-follow { border: 0;position: fixed; top: 240px; left:0;} #live-support { border: 0;position: fixed; top: 370px; left:0;} #knowledge-base { border: 0;position: fixed; top: 170px; left:0;}

## NORMDIST - Normal Probability Density Function

by QuantShare, 2837 days ago

The NORMDIST function is similar to the one available in Excel. Given a set of parameters, this statistical function calculates the normal probability density function or the cumulative normal distribution function.

Here are the different parameters of the NORMDIST function:
X: The function will return the probability of the value "x" occurring.
Mean: The arithmetic mean of the current distribution
Standard deviation: The standard deviation of the distribution
Cumulative: Determines whether to return a cumulative normal distribution function (value set to 1) or a normal probability density function (value set to 0).

Example 1:
If we assume that the one-bar rate of return over past days is normally distributed then the next formula will return the probability of the current day one-bar rate of return occurring.

p1 = perf(close, 1);
a = NORMDIST(p1,sma(p1, 200),stddev(p1, 200),0);

If on bar N, the function returns 12 and on that bar the rate of return is -0.2%, then the probability of having a rate of return of -0.2% is 12%.

Example 2:
By specifying 1 in the "Cumulative" parameter, we instruct the function to return the cumulative normal distribution function.

a = NORMDIST( 0.8, 1, 0.3, 1);

What is this?

 Type: Trading Indicator Object ID: 1041 Country: All Market: All Style: Technical Analysis

Related objects
Show All
Day of week and Week number function (by Brian Brown, uploaded several months ago)
No notes
 23
Derivatives: Number of days until the expiration date (by QuantShare, uploaded several months ago)
No notes
 15
Annual Return of a Security (by bug man, uploaded several months ago)
No notes
 10
Covariance (by Stefan Kroscen, uploaded several months ago)
No notes
 75
Cumulative Sum of a Technical Indicator (by Patrick Fonce, uploaded several months ago)
No notes
 26
Set Global Variable (by QuantShare, uploaded several months ago)
No notes
 26
Avgerage Correlation (by Vangelis M., uploaded several months ago)
No notes
 21
Number of reviews
Average rate
Click to rate this item
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object

 Random Blog Posts Different periodicities and chart bar types in QuantShare Trading Software Several money management strategies in a trading system How to get buy and sell orders for a portfolio based on a trading system/strategy How to combine long, short and custom portfolio strategies within a trading system Step by step on how to get free realtime/delayed data for stocks, futures and currencies Compare stocks and securities by creating a relative performance chart Buy the best/top rated stocks or how to create powerful rank based trading systems Ranking stocks based on their correlation with the S&P 500 Index Show All

Number of reviews
Average rate
Click to rate this item
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object