New article: Fundamentals of Statistics
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New article Fundamentals of Statistics is published at mql5.com:
Every trader works using certain statistical calculations, even if being a supporter of fundamental analysis. This article walks you through the fundamentals of statistics, its basic elements and shows the importance of statistics in decision making.
What is statistics? Here is the definition found on Wikipedia: "Statistics is the study of the collection, organization, analysis, interpretation, and presentation of data." (Statistics). This definition suggests three main components of statistics: data collection, measurement and analysis. Data analysis appears to be especially useful for a trader as information received is provided by the broker or via a trading terminal and is already measured.
Modern traders (mostly) use technical analysis to decide whether to buy or sell. They deal with statistics in virtually everything they do when using a certain indicator or trying to predict the level of prices for the upcoming period. Indeed, a price fluctuation chart itself represents certain statistics of a share or currency in time. It is therefore very important to understand the basic principles of statistics underlying the majority of mechanisms that facilitate the decision making process for a trader.
Author: Sergey