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what is the BF list????
----- Original Message -----
From: Walter Lake <wlake@xxxxxxxxx>
To: Metastock bulletin board <metastock@xxxxxxxxxxxxx>
Sent: Friday, July 21, 2000 11:15 AM
Subject: E Waves etc
> Thanks for your emails
>
> This appeared a while back on the BF list. It will probably be of interest
> in developing your trading system to take advantage of it..
>
> Watch out for those "xxx" sites <G>
>
> Best regards
>
> Walter
>
> > Let me report some recent discussions at yats@xxxxxxxxxxx
> > Alex Plank mentioned a very interesting article from Sornette
> > (http://xxx.lpthe.jussieu.fr/abs/cond-mat/0001324)
> >
> > "We present a simple and general result that the sign of the
> variations or
> > increments of uncorrelated times series are predictable with a
> remarkably
> > high success probability of 75% for symmetric sign distributions.
> The origin
> > of this paradoxical result is explained in details. We also present
> some
> > tests on synthetic, financial and global temperature time series. "
> >
> > We had some difficulties in understanding the trick, and some have
> built
> > successful trading model form this ;-)
> >
> > In subsatnce this article told us that the price return are
> oscillating
> > around its mean. If the yesterday return is heigher than its mean
> we can
> > predit that today return will be lower than yesterday return, and
> vice
> > versa, with a 75% success rate.
> >
> > I suspect that many chartist patterns are victims of this,
> including Elliott
> > Wave, Fibonacci, and generaly speaking, all pull-back based
> patterns,
> >
> > Some kind of optical illusions that provide any edge, since the
> basis of
> > those patterns is market efficiency !!!
> >
>
>
>
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