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

Statistical Measurements and Trend Behavior Distinguished

Traders generally understand that markets do not always behave as expected, even when strong indicators are tracked and monitored. Statistical measurements are attempts at bringing order and predictability to an otherwise chaotic world. This is accomplished through identification of likely outcomes or probabilities and by applying statistical measurements to arrive at a conclusion.

Key Point

In spite of a desire to create predictable analysis through the use of indicators, the great variable remains unpredictable behavior among investors.

Trend behavior contains so many random variables that the statistical world is of only limited value. Many tools such as moving averages—especially ...