This paper discusses Volume-Price distribution of stock market. The normal\ndistribution-like structures spanning different time are studied, based on\nwhich we propose a predictive model of Volume-Price distribution in China\nstock market. The paper includes three parts: First, the hypothesis that the\nChinese stock market day trading volume-price distributions does not obey\nnormal distribution is verified. However, a â??fat tailâ? approximate normal distribution\npattern is founded. After smoothing the distribution of volume and\nprice, approximate normal distributions of trading volume and price distributions\nfor different time spans are discovered. On the basis of two previous\nstudies, state transition model of volume-price distributions is proposed. State\ntransition probability table is created based on clustering analysis. The mode\ncan appropriately account for the transition Chinese stock market trading volume-\nprice distribution network transitions between states, and can be used to\npredict possible future distribution, to provide a quantitative indicator in the\nstock market investment.
Loading....