Is there any scientifically valid way to distinguish non-random stock price movement from random noise?


My answer to Is there any scientifically valid way to distinguish non-random stock price movement from random noise?

Answer by Ruchir Gupta:

Yes, there is a scientific valid way, however first you need to understand why it is scientifically valid.

Reason is a lot of people dont believe in Astrology and that is fine as I have also been a not believer, however I was able to make room for understanding that Astronomy is scientific and reason was simple that there is a gravitational pull of all these planets which hold them together hanging in the space and this gravitational pull or Magnetic Current also influences Human mind, influences the weather on earth, alters tides and currents and brings natural calamities.

I am just giving you a hint go and test that when Saturn Retrogrades* what happens in the Global Equity Indices, it could be S&P, Nasdaq, TASI, FTSE, DAX or even currencies. Saturn Retrograde often correlates with fall in major Equity Indices. If you are backtest and see the correlation you will be amazed. This is just one phenomenon. There are many more. If feel excited after testing the results with Saturn, test for other planets are well.

Retrograde Motion: This is referred as when a planet starts appearing to move backwards when viewed from earth.

Is there any scientifically valid way to distinguish non-random stock price movement from random noise?

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