|
39.48, -82.98 | It's not a matter of the Universe operating at random.
Imagine that a trader noticed that corn was always lower on Friday than on Monday. He begins buying on Friday and selling on Monday. Meanwhile, others have spotted the pattern and are doing the same thing. The result is more demand on Friday and less on Monday, and prices begin to reflect this. The pattern was destroyed by traders, shortly after it was identified.
This goes on all the time. The result is that no patterns are left in the time series. It goes on a random walk.
But don't take my word for it. Build your own random time series and see. | |
|
I really like this chart. For you Mikado!
