Checking for Stationarity by Gregory N. Hight
ARTICLE SYNOPSIS ...Checking for Stationarity by Gregory N. Hight
A price chart is really a time series, and if you're using technical analysis on one segment, then it's important that the statistical characteristics are the same throughout the data. This is called stationarity. Here's a method for verifying that the data is statistically consistent.
It doesn't matter whether you analyze markets using technical or fundamental methods. If you're interested in trends and patterns, you're using time series data.
You've probably illustrated trends and patterns using a chart with time on the horizontal axis and the...