e in a set of data of a recurring pattern that would enhance the ability to predict future movements in the data set. If such a recurring pattern does not exist, the assumption is that movements in the data set follow a random walk.
Many investment advisors claim to detect recurring patterns in the movement of common stock prices. These advisors sell their investment information to investors.
The runs test may be applied to any binary series รน any series consisting of either/or events, such as a stock average that rises or falls. The test permits an examination both runs (successive moves in the same direction) and reversals, and to determine the likelihood that any pattern could have occurred by chance. The test includes a formula leading to the avera
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