Skip to Main Content
A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits
book

A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits

by Michael C. Thomsett
July 2015
Intermediate to advanced content levelIntermediate to advanced
352 pages
9h 40m
English
Pearson
Content preview from A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits

Fat Tails and Trends

Statisticians take comfort in normal distribution, the well-known bell curve that illustrates how outcomes are likely to fall. As the curve moves upward, a greater number of occurrences are found; as the curve moves to the extremes, the number of occurrences declines. This bell curve is shown in Figure 2.1.

Image

Figure 2.1 Normal distribution on the bell curve (Prepared by the author)

However, the ideal statistical outcome is a model only. Stock trends are not normally distributed and, in fact, might appear random at first glance. There is order and predictability to the trend, but the trend itself cannot be measured in the ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Kirkpatrick’s Investment and Trading Strategies: Tools and Techniques for Profitable Trend Following

Kirkpatrick’s Investment and Trading Strategies: Tools and Techniques for Profitable Trend Following

CMT Charles D. Kirkpatrick II

Publisher Resources

ISBN: 9780134190662Purchase book