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Technology Stocks : Dell Technologies Inc.
DELL 133.78-0.1%Nov 14 9:30 AM EST

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To: BGR who wrote (84283)12/8/1998 9:47:00 PM
From: Moominoid  Read Replies (2) of 176387
 
As an example let's consider the classic example of the mean-reverting
tradeable element with a stochastic component, short-term interest rates,


The key is autocorrelation in P-M. I don't know whether your example displays a lot of autocorrelation or not or is closer to white noise.

I could be way off, but am just sugegsting posisble mechanisms that might give some TA methods an edge over just guessing.

From an economic theory point of view if 90% of currency and bond traders use some form of TA at least some of the time (as I read somewhere recently). Then if TA doesn't work they must all be irrational. If so how comes the market would be efficient which is the theory that says that TA doesn't work in the first place.

Don't understand the comment on Asian options?

I'm just thinking of common stock.

David
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