What’s the Deal With High/Low Forecasts?

High/Low Forecasts

Predictions of High and Low Prices as Technical Indicators Since finding a “computable” algorithm to predict high and low security prices, Information and Price Dynamics assembled statisticians, programmers, data analysts to develop and explore the implications of this approach.  Today, we develop more than 200 high/low forecasts of stock prices, exchange traded funds (etf’s), indexes, and futures over horizons of one to 30 days. We believe we are the only company to be consistently producing this scope of high and low price forecasts. We are focused on improving the algorithms and trading on our own account. We also are interested in licensing elements of the intellectual property (IP) which link into our system.

As evidence we are onto new ways of looking at stock prices and investing, we find that high/low H/L forecasts can be combined into a new Technical Stock Indicator, more powerful than some of the conventional tools, like the Relative Strength Indicator (RSI) or Stochastic Oscillator (SO).

Here is a link to a presentation that highlights the Predicted Range (PR) as Technical Stock Indicator which can lead – with the SPDR S&P 500 exchange traded fund SPY – to results which beat Buy & Hold, even after capital gains are deducted on an annual basis from trading profits.

Predictions of High and Low Prices as Technical Indicators

Here’s another useful application of H/L forecasts – a system for predicting the direction of forward closing prices! 

Information and Price Dynamics Discussion Paper1

For further information on the details of either of these applications, contact research@infodynamicsinc.com.