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🌟 Complete Calculation of Quantum Price Level (QPL)

🚩 Step 1: Prepare Data

You need daily price data for a financial asset, including Open, High, Low, Close, and Volume.
For example:
Date
Open
High
Low
Close
Volume
2023-01-01
100
105
99
101
50000
...
...
...
...
...
...

🚩 Step 2: Compute Daily Return

Note: The first data point cannot be computed as it requires the previous day's closing price.

🚩 Step 3: Compute the Wave Function Q(r)

  • First, compute the standard deviation of all daily returns:
  • Define the interval width:
  • The range spans from \( 1 - 3\sigma \) to \( 1 + 3\sigma \), divided into 100 bins.
  • Each bin width:
  • Count the occurrences of daily returns \( r \) in each bin.
  • Normalize the frequency count to obtain the wave function \( Q(r) \), which represents the probability distribution of historical returns.

🚩 Step 4: Compute λ (Lambda)

Identify the bin with the highest frequency \( r_0 \) and its adjacent bins \( r_{-1} \) and \( r_{+1} \), then compute \( \lambda \):
  • \( r_0 \) is the return corresponding to the highest probability.
  • \( Q(r_{-1}), Q(r_{+1}) \) are the adjacent bins' probabilities.
This method is calculator-friendly, making it the recommended approach.

🚩 Step 5: Compute the 21 Quantum Financial Energy Levels QFEL(n)

First, calculate the energy scaling factor K(n):
Then, solve the cubic equation for E(n):
To solve this, apply Cardano's formula:
Given a cubic equation:
The solution is:
where E(n) is the quantum financial energy level QFEL(n).

🚩 Step 6: Compute Quantum Price Return (QPR)

This step normalizes the quantum energy levels by the base level QFEL(0) to make them comparable.

🚩 Step 7: Compute the Normalized QPR

This step scales QPR to align with market price movements.

🚩 Step 8: Compute Quantum Price Levels (QPL)

QPL comes in positive and negative variants:
  • Positive Quantum Price Level QPL^+:
  • Negative Quantum Price Level QPL^-:
Thus, for each trading day, we obtain 21 positive and 21 negative QPL levels, which can be used to predict significant price points.

🚩 Step 9: Quick Calculation Summary for Casio Calculator

When using your Casio calculator, you need to input only:
  1. Daily price data (Open, Close)
  1. Compute σ (standard deviation) to derive dr
  1. Distribute daily returns into 100 bins and compute Q(r)
  1. Identify the highest Q bin and its adjacent bins r₀, r₋₁, r₊₁
  1. Compute λ
  1. Solve for QFEL(n) using Cardano's formula
  1. Calculate QPR(n) and NQPR(n)
  1. Multiply by Open Price to obtain QPL^+ and QPL^-
Even if you're new to financial modeling, this step-by-step process ensures clear and accurate computation of QPL.

🚩 Important Notes

  • λ is asset-specific—different assets have different λ values.
  • QPR and NQPR map quantum price levels to real-world market prices, making them actionable.
  • Using the symmetric method for λ is the easiest way to input into a Casio calculator.