Can the SB chart be distinguished from the price chart? - page 3
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I wonder why ask a question if you know the answer? ))) The differences were talked about almost all through the A_K thread.
Of course you can. By the type of distribution dY. SB has a normal distribution, the price chart has a non-normal distribution).
It is also true that the answer to this question solves absolutely nothing.
I wonder why ask a question if you know the answer? ))) The differences were talked about almost all through the A_K thread.
Of course you can. By the type of distribution dY. SB has a normal distribution, the price chart has a non-normal distribution).
It's also true that the answer to this question solves absolutely nothing.
Why get into the subject if you know nothing about it?
Actually the question in the thread.
Two charts, which one is the SB, which is the price chart?
The price is at the top, because I can remember it.
Actually the question in the thread.
Two charts, which is the SB, which is the price chart?
if on topic... visually no. the distribution you know you need to look at. or what other factors to check.
It is easy to generate a SB with the same distribution as the price.
No. The SB has a normal distribution.
And it just means that small increments happen more often than large increments.
And what does this give us in trading? Nothing.
Because in forex we are asked "where will the price go?". If forex asked us "What size will the next increment be?", then knowing the type of distribution chart, we could win.
SB -"Standard Library" ??? What's the timetable there ?
Ahhhh... SB is "random wandering"... I hope I got it right.
On the face of it, it's hardly possible to distinguish between a price chart and a random walk in a small area. However, it is not possible to model the price movement by a random walk. For the simple reason that a random walk is based on a uniform or normal distribution. The graph of price movement is neither.
The vast majority of well-studied distributions of random variables assumes that the factors of their formation are independent. Price formation is fundamentally different - the behaviour of market participants always depends on each other. Distributions with internal dependence are much less well researched. (The only exception is the hypergeometric distribution, but price formation is not).
The main noticeable difference between the price chart and the random walk is the volatility variation. Another random number generator could be used for volatility. But there will be a discrepancy - price volatility has a clear daily and seasonal cyclicity.