skew vs. valule

Discussion in 'Trading' started by Rona1d, Nov 23, 2008.

  1. Rona1d

    Rona1d

    what can u assume or inference from the skew of a stock's past values. Or, what can u assume from a positive kurtosis of a stock's past values.

    In other words, what is the significance of skews or kurtosis?
     
  2. If the future "repeats" similar to prior history, you can have a better expectation of how things will unfold. It also helps to have a mentality of "records are made to be broken" just in case the market goes farther than you expect. :)