Not a single day goes by without some fancy statistics of price action shown in financial biosphere or Twitter. Most of these statistics have something in common: they are useless. The explanation for that is provided below along with a recent example. Access to article requires Premium Insights subscription.
Most of those who present statistics of price action in financial blogosphere and Twitter appear to understand little about probability and especially expectation. As a result of free access to charting and analysis software, there is proliferation of ludicrous claims about market price action.
We will consider a recent example here, scrutinize the claims made and understand why they are ludicrous.
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Specific disclaimer: This report includes charts that may reference price target levels determined by technical and/or quantitative analysis. No updates to charts will be provided if market condition changes occur that affect the levels on the charts and/or any analysis based on them. All charts and analysis in this report are for informational purposes only. See the disclaimer for more information.
Disclaimer: No part of the analysis in this blog constitutes a trade recommendation. The past performance of any trading system or methodology is not necessarily indicative of future results. Read the full disclaimer here.
Charting program: Amibroker
Data provider: Norgate Data
Copyright notice: Any unauthorized copy, reproduction, distribution, publication, display, modification, or transmission of any part of this report is strictly prohibited without prior written permission.
