| step 3 I
Now, we calculate the ratios Pk, Pj and Py:
Pk = K/X*100 = 66.6%
Pj = J/X*100 = 0 being the sum of them equals to 100.
Py = Y/X*100 = 33.4%
As only 1 parameter has been considered, there in no need to weigh the probabilities.
Now we can calculate the Trend Probability Index (TPI).
TPI = max(Pk;Pj)+max(Pk;Pj)/100*Py*r*s being: s, r >0
TPI= [ 77.71 s=landr=0.5
As TPI is UP 77.7% it is more likely tomorrow an uptrend will take place.
step 4 I
Assuming we have done all previous steps for 4 parameters (High, Low, Close, Open), we have: (values are for example)