Computing Number of Buy and Sell Combinations

To compute the number of buy and sell combinations for a price series, apply the following formulas. For the example assume the price series includes 50 prices, of which 30 are on the upside and 20 are on the downside.

Total Number of Buy and Sell Combinations

The total number of buy and sell combinations for the price series is computed as:

((number of prices in series)*(number of prices in series - 1))/2

Total number of buy and sell combinations = (50*49)/2 = 1,225

Number of Buy Upside and Sell Upside Buy and Sell Combinations

The number of buy upside and sell upside buy and sell combinations is computed as:

((number of upside prices)*(number upside prices - 1))/2

Number of buy upside and sell upside buy and sell combinations = (30*29)/2 = 435

Buy Upside and Sell Downside Buy and Sell Combinations

The number of buy upside and sell downside buy and sell combinations is computed as:

(number of upside prices)*(number downside prices)

Number of buy upside and sell downside buy and sell combinations = 30*20 = 600

Buy Downside and Sell Downside Buy and Sell Combinations

The number of buy upside and sell upside buy and sell combinations is computed as:

((number of downside prices)*(number downside prices - 1))/2

Number of buy downside and sell downside buy and sell combinations = (20*9)/2 = 190

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