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Ron -
It has been a long time since I used my degree in math, let alone what
little college physics I understood. Could you give a brief definition
of Brownian motion? I know it is something about random movements of
particles or something. How does it relate to the market and to
technical analysis?
Steve
---
Steven W. Poser, President
Poser Global Market Strategies Inc.
url: http://www.poserglobal.com
email: swp@xxxxxxxxxxxxxxx
Tel: 201-995-0845
Fax: 201-995-0846
----- Original Message -----
From: Ronald McEwan <rmac@xxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Sunday, March 26, 2000 8:53 PM
Subject: [RT] Gen:Brownian Motion
> I have been working with using the concept of Brownian Motion
(measuring
> Log drift and Log volatility) to predict the direction of an Index (in
> this case the OEX). This seems to be a useful tool in predicting the
> short term movement of a security (index). The attached .gif is an
> example of using this analysis. The actual OEX close from 3/13 to
3/24
> is plotted along with Brownian Motion forecast for the same period
(3/13
> to 3/24) and the 10 day forward prediction of price direction
movement. I
> must emphasize that this does not reliably predict a price level (at
> least I can not do it), but it does give a good indication of price
> direction. Based on this I am looking for a downward movment of the
OEX
> this week.
>
> Ron McEwan
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