What's the Deal With High/Low Forecasts

High/Low Forecasts

Buying cheap and selling at a higher price is the essence of trading. Predictions of high and low (HL) stock prices for one, or more trading days, or a few seconds within a trading day, can beat naive “no change” forecasts and trend extrapolations.

Information and Price Dynamics offers

  • forecasts of HL stock prices for periods ranging from 1-30 days for several hundred US stocks and exchange traded funds
  • information on forward price indicators developed from HL price forecasts
  • structured trading solutions

A misreading of finance theory – “efficient markets” and “rational expectations” – seems to have has guided investors away from learning about HL predictions and their applications in trading.

In fact, HL stock price predictions are completely consistent with these tenets of finance theory. Indeed, Information and Price Dynamics predictive algorithms work successfully with artifacts such as random walk time series – forecasting high and low values over any designated period.

Going forward, watch this space for exhibits of the trading power of HL price forecasts and their application in forward price guidance.

For further information, contact us at

research@infodynamicsinc.com

or call 303-444-6356.