Lagrange Polynomial Interpolation for Projecting Price Points

Summary

This indicator fits a Lagrange interpolating polynomial to selected price points on a chart, then uses the polynomial to calculate subsequent points. The user selects a starting bar and an ending bar for the analysis, along with the number of bars to project. The distance between the selected bars determines the polynomial degree, so changing the interval changes the curve used for the projection.

The document explains the construction concept and its adjustable inputs, and notes that an earlier version appeared in 2008. It offers no forecasting results, comparison with simpler methods, or discussion of uncertainty. Because polynomial interpolation describes a curve through selected points, projected values should be treated as extrapolations whose reliability is not established here; the document does not show evidence that they predict future prices accurately.

Key ideas

• The indicator fits a Lagrange polynomial to price points selected by a bar interval.
• The interval between the chosen bars sets the polynomial degree and resulting curve shape.
• A separate input controls how many future bars are projected.
• The document describes the calculation but provides no evidence of forecast accuracy.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.