Thursday, October 19, 2006

Quant Chart Accuracy

Now here's a quant chart for the same stock, same time period.
The proprietary algorithms shown at bottom tell the tale. They forecast in the following manner:
blue diverging down/away from green signals price dropping; blue approaching green signals price rise within 3 days; blue crossing moneymaker (zeroline) northbound signals price rise within 2 days, but if southbound over moneymaker signals price drop within 2 days; red rising even slightly signals price rise within 1 day. there is only one failure here- third from left... and 5 successes. uh, actually 6 successes if you count what happened immediately after the end of this chart (you can only see it by looking at the t/a chart in the last blog)- as you see here, blue ran up to and kissed green; then, just a couple days later, the price zoomed upward 30%. and that's why i prefer quant to t/a.

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