{"product_id":"v09-c01-pseudo-pdf","title":"V.9:1 (23-26): Pseudo Stocks by Mark Harris","description":"Pseudo Stocks\nby Mark Harris\u003cbr\u003e\u003cbr\u003eThe stocks charted in Figure 1 look for all the world like typical charts you might find in a chartbook. I\nhave added a few uptrend and downtrend lines and shown how 52 (in the upper chart) seems to provide\nlong-term resistance, then support, and in the latter stages resistance again. I can't tell you what stocks\nthese are, because they aren't charts of real stocks: the charts were generated by my computer along with\nthousands of others. They are shown as a family here because they all possess common statistical\ncharacteristics.\u003cbr\u003e\u003cbr\u003eSome years ago I became interested in modeling stock charts using stochastic methods that is, using\nrandom numbers to drive the simulation.\u003cbr\u003e\u003cbr\u003eI started off looking at random walks by letting p be today's closing price and getting tomorrow's price\nfrom p + a x R, where R is a random number between -0.5 and +0.5 and a is a scaling factor. This\nproduces squiggly lines, but compared with a real plot of closing prices, the charts are neither\naesthetically pleasing nor do they produce the urge to dive in and apply technical analysis. what, in other\nwords, should the squiggles look like to approximate a real stock chart?\u003cbr\u003e\u003cbr\u003eHere, naturally, we are far from scientific bedrock and getting into the realm of art. If a successful\nsimulation produces a chart that looks to me as if it came out of Daily Charts, it's not far from my\nproclaiming, \"I don't know much about art, but I know what kind of pictures I like to look at.\"","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133888131441,"sku":"\\V09\\C01\\PSEUDO.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_004a71e5-9b80-43c7-8443-1c76590d752a.jpg?v=1739655572","url":"https:\/\/shop.traders.com\/products\/v09-c01-pseudo-pdf","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}