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yes exactly what i thought would be useful.
but i assume that larry williams is using a special software or any other
programming language.
so with other words tradestation would be no help for doing this kind of
analysis.
thanks
jim
----- Original Message -----
From: "Alex Matulich" <alex@xxxxxxxxxxxxxx>
To: <omega-list@xxxxxxxxxx>
Sent: Friday, April 21, 2006 5:36 PM
Subject: Re: statistical utilization
> >maybe i can question it better:
> >which day of the week has the highest probability to be a trend day ( or
a
> >day with a greater range)?
> >
> >i have read an article from larry williams where he wrote that days after
> >monday, thursday or friday are trend days and any setup will have greater
> >significance. so i thought how does he know that???
>
> He knows that by writing software to identify setups and patterns
> on different days of the week, and determine how often the setup
> yielded fruit X number of days later. For example, suppose he
> says "I wonder if 3 up closes in a row means anything?" So he
> looks for places in the past 10 years or so of history that have 3
> up closes in a row, record the day the pattern occurred, and note
> what happened the next day and maybe 5 days later. In doing so, he
> might discover, for instance, that if the 3rd up close occurs on a
> Thursday, then Friday's price has a 72% chance of being lower.
>
> Writing software for statistical analysis of patterns on market data
> is drudgery but it can yield interesting results. In my opinion,
> what's missing from all this is a measure of confidence (which is
> not the same as probability).
>
> -Alex
>
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