Stock Multiple Price Patterns Generator - Smoothed Patterns Look Like Real Price Charts

Use this generator to see price patterns generated repeatedly using a random walk plus drift model.

For one run of the calculator you can generate multiple series of patterns by specifying the number of price series generated. Each series represents a unique set of prices. The calculator computes the average for each price for the same time interval over all the generated prices series. The average prices for each time interval are displayed as a single price series on a new page. This chart tends to smooth variations in prices between series.

Run the generator with the default 10 price series and then run it for 100 price series to see the smoothing effect of averaging many prices.

Stock Multiple Price Patterns Generator
Mean of Random Component:
Standard Deviation of Random Component:
Trend:
First Price:
Number Prices (maximum is 10000):
Number Price Series Generated:

 

The Stock Price Pattern Generator uses the following recursive formula to generate one price series:

Price = Trend + Previous Price + Random Component

Where:

Price is the new price.

Trend is a positive or negative number or zero. A non-zero value causes prices to follow a positive or negative long-term trend. In formal mathematical models Trend is called drift.

Previous Price is the previous price.

Random Component is a normally distributed variable with a specified mean and standard deviation. The Random Component causes the variation in computed prices. For each price the model generates a random component using the Box-Muller transform. The seed for the random component of each price series is determined by the software so each price series has a unique set of prices.

First Price is the first price of the series.

Number Prices is the number of prices generated in each series.

Number Price Series Generated is the number of price series generated for one run of the generator.

Computational Notes

The first price of the model is First Price. Each successive price is generated using the above Price formula.

To create a pattern with just one series of prices enter 1 for the Number of Price Series Generated.

The first and last price numbers on the horizontal axis of the display chart are denoted as 0 and Number Prices minus 1.

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