Run a few of the lognormal price path simulations. Examine the price pattern for trends. Find one
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Run a few of the lognormal price path simulations. Examine the price pattern for trends. Find one or more of the following technical patterns:support arearesistance areauptrend/downtrendhead and shoulders
inverted head and shouldersdouble top/bottomrounded top/bottomtriangle (ascending, symmetrical, descending)flag
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A B D E SIMULATINGA LOGNORMAL PRICE PROCESS 1 2 Initial stock price 3 Mean retun, m 4 Delta t 20 12% 0.0833 <-- =1/12 Stock price with sigma = 6 Random Month 7 number 20% 40% 80% Monthly prices for 3 sigmas 20.0000 25 20.0000 17.7800 16.3229 13.9752 12.5330 20.0000 18.9519 1 -1.10554 15.6492 10 -0.82712 18.2497 13.0580 9.4766 7.5459 20 11 -1.43142 16.9710 12 4 -1.02984 16.1521 15 13 0.966426 17.2506 14.1534 9.5275 14 -1.10249 16.3494 12.5869 7.4601 10 15 7 -0.41797 16.1200 12.1144 6.8418 13.2783 12.3658 12.8798 16 8. 0.707861 16.9612 8.1378 6.9876 7.5052 17 -0.70316 16.4501 18 10 0.266112 16.8727 0 1 3 6 7 8 2 4 9. 10 11 12 19 11 -1.04668 16.0429 11.5283 5.9528 20 12 -0.87832 15.4029 10.5211 4.9088 20% - 40% 80% 21 CO
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