We are excited to announce the latest update to our Conditional Statistics™ on Patterns ID! This update introduces two powerful new metrics: p-value and autocorrelation. These additions provide deeper insights and advanced analytical capabilities, both on the dashboard and screener page.
Understanding P-Value
The p-value is a statistical measure that helps determine the significance of your results. In the context of our Conditional Statistics™, the p-value indicates the likelihood that a conditional average is greater than zero. A p-value less than 0.05 signifies a high level of confidence that the value is significantly greater than zero, while a p-value greater than 0.95 (inverse value) indicates confidence that the value is significantly less than zero.
Uses in Markets:
- Significance Testing: Helps traders determine the statistical significance of their observations.
- Confidence Levels: Provides a measure of the reliability of the observed data points.
Understanding Autocorrelation
Autocorrelation measures the correlation of a time series with its past values. In our platform, it indicates the relationship between prior day values for each condition. Autocorrelation helps traders identify whether a time series exhibits momentum or mean-reversion.
Uses in Markets:
- Momentum Detection: Positive autocorrelation suggests momentum, where past values influence future values in the same direction.
- Mean-Reversion Detection: Negative autocorrelation indicates mean-reversion, where past values influence future values in the opposite direction.
Where to Find the New Stats
These new metrics have been integrated into the following areas of the Patterns ID web app:
Dashboard Page
- Conditional Statistics™ Table: The dashboard table now includes p-value and autocorrelation to quickly interpret the statistical strength of the results and any momentum or mean-reversion potential for each of the stock’s indicator values.
- Inspector Table: The inspector table now includes columns for p-value and autocorrelation, providing users with immediate insights into the statistical significance and relationships of their selected conditions.
Screener Page
- Screening by P-Value and Autocorrelation: You can now use p-value and autocorrelation as criteria in your screening process. This allows for more precise filtering based on statistical significance and historical relationships.
Conclusion
The addition of p-value and autocorrelation marks another enhancement to our platform, empowering traders with advanced tools for statistical analysis. These metrics provide greater depth in understanding market behaviors and support more informed trading decisions. Explore these new features on the dashboard and screener pages to see how they can elevate your trading strategies.
Stay tuned for more updates as we continue to expand and refine the capabilities of the Patterns ID web app. Your feedback is invaluable in our journey to provide the best research tools for retail traders. Happy trading!