Trading The Stockmarket
If you are trading the stockmarket, there would be no point in playing the game if it was purely random, and various important papers have shown a distinct repetition of patterns both in price and time cycles, which effectively confirm that market action is not random. Charts often exhibit similar pattern behaviour in indices, forex, treasury bonds and commodities, aswell as share prices. Nevertheless, there are times when action does appear haphazard, and one explanation for this is what is called the ‘random walk theory’.
