Price Patterns - Fluctuating Prices Produce Equal Winners and Losers

A price pattern that regularly moves ups and down often produces an equal number of profitable and unprofitable buy and sell combinations. For Microsoft (MSFT) from January 2, 2001 through April 28, 2006 the fluctuating daily closes caused 55.25 percent of the 893,116 daily buy and sell combinations to make money.

The percent returns chart shows the winning trades in green and the losing trades in red. Most of the losers occurred for purchases at relatively high prices in 2001 and 2002. As prices trended to the upside, more trades became profitable

The winners and losers map shows the profitable trades in green and the unprofitable ones in red.

Posted April 28, 2006.