Alright all-knowing /biz/, I have questions, and what better place to post than this giant circle-jerk.
Based on a stock's previous price points (1 - 7 days old), what kind of information can be determined, if any, about the future trend of that particular stock?
Also,if the closing prices are consistently higher than the opening prices for a given day, is that any indication that it will continue to rise?
Similarly, what other influences factor into the future trend of stocks? With the exception of the news being the most obvious one.
Thanks in advance biz bros.
Shameless first self-bump, for science.
Second self bump, still going strong
>>963576
past performance is not indicative of future results
>>963759
If past performance is not indicative of future results, then what are stock market algorithms based on?
>>964011
Past performance. But they're never completely correct. This is why investing is all about risk, you twit.
>>964227
No need to get harsh, friend. Intuitively, yes, it is all about risk, however it would seem logical that minimizing risk is possible and should be sought after.
These stock market algorithms should therefore fall into the category of minimizing risk.
At this point, my overall question would be (if any non-meme /biz/ bros are lurking), what past performance attributes do these stock market algorithms search for?
Lay the technical nomenclature on me /biz/.
>>964286
You're looking at it the wrong way round. Algos don't seek to minimize risk, they seek to be the first to opportunity.
>>964288
How exactly do stock algorithms find the opportunity first?
My thought is that they use past performances, but what specifically do they look for?
>>964293
By any number of metrics. When you screen for any stock, you're basically writing your own simplified version of it. What an algo does is look for changes in price, volume etc that signals a good time to buy or sell. It's a way to take positions without putting everything out up front, that's all. I was saying the premise of your question was flawed, it's not as much about minimizing risk as it is maximizing available opportunity. If you don't want risk, don't trade at all, go teach sixth grade math etc. Risk is risk, it's there no matter what, it's part of the game. Algos are just more about getting the full worth of something by paying less than the other guy.
>>964293
Also OP your window is wrong. No one is running anything on a 7 day spread. Go look at the 52 wk h/l on whatever stock you're interested in. Track the chart for the same time period. That's the information you're looking for to start with and then you can refine it from there.
