This pages shows a randomly generated chart of the price of a fictitious stock. The aim is to illustrate that even a totally random graph can display features that may be mistaken for trends (which in the field of technical analysis may be called things like support, resistance and channels).
The graph is generated with a simple algorithm. In essence:
next value = current value * R()
where R is a function that generates a random number, distributed around 1.0 with a standard deviation of approximately 3%.
See generateGraph() in rcg.js for the exact implementation details.
This page was created by Olof Andersson – GitHub