1500 words are enough to tell you "that I love you", but to show randomness in the currency market with those words is a though test of restricting your writing, but I will try.
I have spend more than 2 years in research on randomness in financial markets. I was frustrated to have this invisible and disputed partner of randomness running around in disguise, in my price chart. I finally found this partner and it proved to be a friend instead of an enemy, you can use the randomness to your trading advantage, so do not fear it.
The time period I use for one move is one minute. The currency is EURUSD.
A move is either up or down. 1 denotes up and -1 denotes down. A move = 1 trading minute.
A run is a count of the consecutive times the price moves in only one direction. Runs can thus be up (positive) and down(negative). A "short" must perceive down (negative) in the context of my article and not as a trade.
Yield is defined as the difference between the next price and the present price.
Assumptions to be verified
IF there are traces of Randomness in the market, what might we expect to find, that could verify it's presence ?
a) If I accumulate all p…