Random Walk alive and well.

["Rob Marsh" <dartingriver@xxxxxxxxxxxxxxxxxxxxx>]

While fiddling about in Excel today, quite by chance I found something quite
sobering (from a classical chartist's point of view anyway)

If you have a couple of minutes try creating the following simple Excel
spreadsheet ( to generate a random walk 'price chart')

In cell A2 :
=rand()

In Cell B2:
=if(A2<=0.5,1,-1)

In Cell C2:
=C1+B2

Copy this down (say) 3000 rows and plot a line graph of column C.

Then keep regenerating the random numbers using F9 to get a freshly
generated random walk each time.

What do you see?

    Trend lines, retracements, consolidations, breakouts, Support,
Resistance, Head and            Shoulders, double tops, V-shaped
bottoms...........etc....etc.

Any pattern you like in fact.

They are all there if you have an eye for them.

AND ALL ON CHARTS THAT ACTUALLY ARE RANDOM WALK!