V.5:9 (292-293): Point/ Counterpoint By Clifford S. Sherry, Ph.D.

V.5:9 (292-293): Point/ Counterpoint By Clifford S. Sherry, Ph.D.
Item# \V05\C09\POINT.PDF
Availability: In Stock

Product Description

Point/ Counterpoint By Clifford S. Sherry, Ph.D.

I believe there are some major flaws in the statistical reasoning in Curtis McKallip's article "Investigating Chart Patterns Using Markov Analysis" (STOCKS & COMMODITIES December 1986). Using the raw numbers from his transition matrix, I believe that the observed probabilities for the pairs of states should be as follows: p1,1 = 58/309 = 0.1877; p1,2 = 15/309 = 0.0485.

Thus the probability of a 1, 2 or 3 is 78/309 = 0.2524; 139/309 = 0.4498 and 92/309 = 0.2977, respectively. If we assume independence, the probability of a 1,1 is equal to p1 times p1 or 0.2524 times 0.2524 = 0.0637.

*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order