Statistic by request:

Someone wanted to take an idea I did quite some time ago, about candle prediction, further. Rather than using 1hr data, he wanted to use daily data. The question is simple: is there an edge in trading off of consecutive bars? In other words, if there have been 7 bars of the same color in a row, what’s the chance that the next bar will be of the opposite color? Is it significantly higher than 50%? I thought no, but I ran the excel formulas anyway and here are the results:

statby reuqestEU Daily, with about 4000 pieces of data

 

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