Thread: Do stock prices really trend?

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  1. #1
    Airbladeqlg
    Guest

    Default Do stock prices really trend?

    Do stock prices really trend?

    Yes, I believe they do. If price movements were completely random, it would be impossible to succeed at trading, in the long run, over any time frame.

    However, try the following test.

    Below are six charts.

    Three represent 1000 consecutive EOD closing prices for three different UK100 stocks (chosen at random).

    The other three were created by generating 1000 points using Microsoft Excel's random number generator.

    Of course, the question is: Which of the three are genuine prices, and which are the random sequences?

    OK, punters - let's have your expert opinions!

    Correct answers will be published in due course.
  2. #2
    Airbladerfd
    Guest

    Default

    Footnote: the vertical scale in the charts is linear, as opposed to logarithmic.

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