Lets start with an example of NIFTY. Tomorrow, NIFTY can have three states -
It can either end in green.
It can either end in red.
It is in the same place.
Note - On any given day, NIFTY will be following one of these three states. Now, as per the theory of the Markov Chain, We need to assume that, tomorrow's state of NIFTY depends on today's state.
So, What happens today is dependant on yesterday's state and so on!
In other words - there is a way to predict what will be the state of NIFTY tomorrow if you know the state of NIFTY today.
This diagram shows an example of such a Markov Chain with assumptive probability values
It can either end in green.
It can either end in red.
It is in the same place.
Note - On any given day, NIFTY will be following one of these three states. Now, as per the theory of the Markov Chain, We need to assume that, tomorrow's state of NIFTY depends on today's state.
So, What happens today is dependant on yesterday's state and so on!
In other words - there is a way to predict what will be the state of NIFTY tomorrow if you know the state of NIFTY today.
This diagram shows an example of such a Markov Chain with assumptive probability values
Get trades instantly and discuss them with me at my Slack Channel @ unofficed.com/chat/
Our community is full with traders who actually trade!
Telegram: t.me/unofficed
Our community is full with traders who actually trade!
Telegram: t.me/unofficed
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Get trades instantly and discuss them with me at my Slack Channel @ unofficed.com/chat/
Our community is full with traders who actually trade!
Telegram: t.me/unofficed
Our community is full with traders who actually trade!
Telegram: t.me/unofficed
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.