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MRLYNNG@xxxxxxx wrote:
>
> In a message dated 97-11-13 13:59:42 EST, you write:
>
> << Interesting to note here, that all 3 failures came when the stated
> Fib levels went against market statistical probabilites. >>
> Walt:
> Can you explain what you mean by this. It is not clear.
> Lynn
Lynn,
Sorry. :)
What I was referring to was the relationship between
various classical market patterns (triangles, Head and Shoulders,
wedges, channels etc. ) when used in conjunction with statistical
probabilities of a pattern's success under particular market conditions.
There are also short-term statistical set-ups that might consist of
only one or two bars.
The patterns are basically a reference point for the statistical
analysis. It's really more about "recognition", than about patterns
per se. One man's wedge, is another man's 5th Elliot wave...etc.
If you have a situation that historically has produced a particular
reaction from the underlying market 70% of the time, you can assume
some directional bias based on that.
Walt Downs
CIS Trading
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