Something a little different today, as we look at the BTCUSD rally within a little more of a mathematical approach. This is a log10 regression of the close price for the last ~325 candles (6H); with an upper and lower bound of 2 standard deviations from the mean.
In a true randomness; we expect expect a result to full within +/- 2 standard deviations around 95% of the time. At a visual glance, we can see that the vast - vast - majority of the trend is within the upper and lower bound; but not all. That suggests that the trend is (probably) a pretty good trend; but to test the goodness of fit we use Pearson's R test. In this case it gives us a result of ~0.94. You can think of this like a % of the variance that can be explained by the trend. That is: 94% of the price movement can be explained by the trend.
(NOTE: This isn't Statistics 102. I know it's not a perfect analogy, but it's close enough...)
This trend suggests that the price is very much maintaining it's overall upward trend.
#crypto
In a true randomness; we expect expect a result to full within +/- 2 standard deviations around 95% of the time. At a visual glance, we can see that the vast - vast - majority of the trend is within the upper and lower bound; but not all. That suggests that the trend is (probably) a pretty good trend; but to test the goodness of fit we use Pearson's R test. In this case it gives us a result of ~0.94. You can think of this like a % of the variance that can be explained by the trend. That is: 94% of the price movement can be explained by the trend.
(NOTE: This isn't Statistics 102. I know it's not a perfect analogy, but it's close enough...)
This trend suggests that the price is very much maintaining it's overall upward trend.
#crypto
