Introduction
A Markov chain is a mathematical model that describes a system evolving over time among a finite number of states. This model is based on the assumption that the future state of the system depends only on the current state and not on previous states, the so-called Markov property. In the context of financial markets, Markov chains can be used to...
This tool uses a discrete-time non-Markovian Martingale stochastic process (Please do not confuse with the strategy of the same name) under the hood to forecast a future (up to 28 bars, customizable) behaviour of the Simple Moving Average. The longer the average period, the more accurate the forecast.
The common cases are the next:
You can apply two instances...