048: Linda Raschke – Trading a Framework of Your Own, and Using Models to Study Price Behavior w/ a Market Wizard
Chat With Traders
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How to Use Models to Study Price Behavior
When you start to think about developing a model, it comes from asking a question. So for example, if the market has gone from low to high two days in a row, what happens the following day? You know, what percent of the time does it go fromlow to high the next day or from high to low the next day? That's your basic modeling. It's usually from just asking one question and then trying to quantify that with just one or two variables. But it's not going to give you anything that you would use to bet the farm on. Just provides a framework.
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