Price Persistency by Gordon Gustafson
Interested in measuring a short-term trend? Hereís an
indicator you can use.
For years, academics have made the case that
price movement is random: future price
changes are unrelated to past price changes.
Although they are random, runs occur in any
series of data. Knowing something about
these runs can add valuable information to
any trading program.
WHAT IS IT?
Price persistency is the number of days that a market continues
to close either up or down. Itís another term for a market run.
As an indicator, price persistency is a measure of a very short-term
trend based only on the history of the marketís movement,
unfiltered by any complex calculation; all it involves is