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PSI – The Probability State Indicator [Premium Articles]

A few days ago I was reading one of my old graduate texts on probability theory and noticed a section that I have forgot all about, or to be more precise, I did not pay attention to it at that time because I was not trading. After suitable adaptations I implemented a result from that section as an indicator. I call it the Probability State Indicator™ or, for short, the PSI.