How to Use the Concept of Mean-Time-to-Failure When Trading
By L.A. Little Sep 21, 2012 11:30 am
MTTF can tell you where price might go.
Note that 47 bars is a rather long time for a short-term trend to persist. If you look at the data, the cumulative probability of a trend failure for a short-term suspected bullish trend of this duration is very high. In fact, it's approaching the 80th percentile, as shown below.
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