SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?


To: Wayners who wrote (454)11/10/2000 1:21:34 AM
From: GraceZRead Replies (1) | Respond to of 24758
 
I was just guessing, I haven't asked Ah how the data for the chart was constructed. There are only two states on a coin toss, heads or tails so to approximate the movement of a stock you'd have to have a situation where price remains constant somewhere. So if you use the four tick states then you can have that. Sort of like ad in, ad out in tennis. If you apply zero-plus tick to heads and up tick to heads following heads and you only allow price to advance on the plus you then have a situation where the next price can be the same as the last.

Same way if you assign zero-minus tick and down tick to tails then price remains the same in the event of the first toss of tails but advances during subsequent tosses of tails. It would approximate a tick counter or a graph that simply counts up and down ticks. The graphs I've seen that tracked ticks look just like any stock graph, that's why I suggested it.

up tick.....................sale is higher than previous sale (+1) heads after heads...price advances by one
zero-plus tick...........sale is the same as previous but the preceding sale was higher (+ 1/2) heads after tails price doesn't advance
zero-minus tick .......sale is the same as previous but the previous sale was lower (-1/2) tails after heads price doesn't decline
down tick................sale is lower than previous sale (-1) tails after tails price declines by 1