@cmike444/supply-and-demand-zones/dist/lib/calculateConfidence.d.ts

A library for identifying supply and demand zones in candlestick data.

import { Candle } from '../types';
/**
 * Calculates a confidence score (0–1) for a zone based on the strength of the departure leg.
 *
 * The score is the average of three equally-weighted factors:
 *
 * - **countFactor**: proportion of departure candles that are decisive or explosive in the
 *   departure direction. A higher proportion signals a wall of unfilled orders behind the zone.
 *
 * - **rangeFactor**: average candle range of the departure leg normalised by `localATR`,
 *   clamped to [0, 1]. Large candles relative to volatility indicate institutional conviction.
 *   Falls back to 0.5 when `localATR` is zero (insufficient data).
 *
 * - **volumeFactor**: average departure volume relative to average base volume, mapped through
 *   `ratio / (ratio + 1)` so that higher volume always increases confidence asymptotically toward 1.
 *   Sparse or declining departure volume scores below 0.5. Falls back to 0.5 when volume data is
 *   absent or base volume is zero.
 *
 * - **timeFactor**: encodes the "Time at Level" odds-enhancer from the spec. Fewer base candles
 *   imply a sharper, less-disputed imbalance. 1–3 candles → 1.0; 4–6 candles → 0.5.
 *
 * @param departureCandles   - Candles forming the explosive leg away from the zone.
 * @param baseCandles        - Candles forming the indecisive base of the zone.
 * @param localATR           - ATR computed for the context window around the zone.
 * @param isUpwardDeparture  - `true` for a bullish departure (demand zone), `false` for bearish (supply zone).
 * @returns A confidence score in the range [0, 1].
 */
export declare function calculateConfidence(departureCandles: Candle[], baseCandles: Candle[], localATR: number, isUpwardDeparture: boolean): number;