The Decomposition Method by Giorgos Siligardos, Ph.D.
ARTICLE SYNOPSIS ...V. 22:9 (22-29): The Decomposition Method by Giorgos Siligardos, Ph.D.
You never know what you might find by studying high, low, and closing prices separately.
In this article, I will introduce the decomposition method of price information, and show how the reverse engineering concept discussed in my previous articles can be expanded to complement this method.
THE IDEA BEHIND DECOMPOSITION
Price data for one day consists of the open, high, low, and close of that particular day. Though these four components are correlated, it can also be useful to study them independently. When the results ...