Tuesday, February 27, 2007

Datawink Looks at the Past as Prologue for the VIX

I mentioned datawink once previously as a chart pattern recognition engine that looks at current chart patterns, finds similar patterns from the past, and uses past outcomes from those similar charts to generate a range of likely future outcomes from the current situation.

By some stroke of luck, datawink just added ^VIX to their database and concludes that based on those historical patterns, there is a 69% probability that the VIX will be below the current price level one month from now. Even more interesting, however, is the list of similar charts from the past and the list of associated outcomes you get when you toggle the mode function from Similarity to Predictability. Try it. I guarantee you will have fun with this site.

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