Machine Learning Gaussian Process Regression Indicator MT4 – [TradingFinder]

The Machine Learning Gaussian Process Regression Indicator is an advanced statistical-machine approach that models hidden price trends using stochastic process theory and provides probabilistic price predictions.

Instead of relying on linear relationships or fixed equations, this indicator uses kernels to display complex and nonlinear relationships in price data as curved lines on the chart.

Machine Learning Gaussian Process Regression Indicator Table

The general specifications of the Machine Learning Gaussian Process Regression Indicator are provided in the table below:

Machine Learning Gaussian Process Regression Indicator at a Glance

The Gaussian Process Regression Indicator is an advanced machine learning tool in technical analysis that provides the following capabilities:

• Removing market noise and identifying hidden trends to reveal the true price path;
• Predicting future market movements using the parameters "Training Window", "Smooth", and "Sigma";
• Modeling recent data and providing output as either smooth or sensitive to price breakouts;
• Updating predictions in three locked modes.

Indicator in an Uptrend

The chart below shows the NZD/USD currency pair in the daily timeframe.

When the indicator is set with an appropriate Smooth value and its output shows a sustained positive slope in the forecasted trend, this condition signals the start of an upward wave.

Additionally, if the actual price stabilizes above the predicted path, it can be considered confirmation of the continuation of the uptrend.

Indicator in a Downtrend

The image below shows the EUR/AUD currency pair in the 5-minute timeframe.

When the Machine Learning Gaussian Process Regression Indicator predicts a sustained negative slope, it can be considered a valid signal of dominant selling pressure and the continuation of the downtrend.

Remaining actual prices below the predicted path also reinforce the likelihood of a correction or the start of a new downward movement.

Machine Learning Gaussian Process Regression Settings

The image below displays the settings panel of the Machine Learning Gaussian Process Regression Indicator in MetaTrader 4:

• Training Window: Last 100 candles used as the training window
• Forecasting Length: Forecast horizon over the next 20 candles
• Smooth (RBF length): RBF kernel length set to 20
• Sigma (Noise): Noise or error variance value
• Training Window Color: Displays the color of training data
• Forecast Color: Displays the color of the forecast section

Conclusion

The Machine Learning Gaussian Process Regression Indicator is an advanced tool for identifying hidden trends and predicting the future price path.

By removing noise, providing smooth or breakout-sensitive outputs, and allowing dynamic updates, this trading tool enables more precise market analysis.

Additionally, the combination of "Smooth" and "Sigma" parameters provides high controllability in both uptrend and downtrend scenarios.