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So, googled this a little bit. Everything I read was very indepth. But for starters can someone give me a quick rundown on how to read this thing?

Here is my interpretation, correct me where I am wrong.

This is over the last year for PANL. The little green and red vertical bars are the actual daily stock price gain or loss, the cone is attempting to do a forward prediction of the stock price??? and that's as far as I can guess.

enter image description here

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Why the downvote? –  ErocM May 28 '13 at 21:42
    
The little green and red vertical bars are called candlesticks. –  Victor May 28 '13 at 23:54

1 Answer 1

A number of ways exist to calculate the chances of a particular outcome. Options, for example, use current price, cost of money, and volatility among other factors to price the chance of an underlying asset reaching a certain price in a certain timeframe.

A graphical forecast simply puts these calculations into a visual format. That said, it appears the image you offer shows the prediction as it existed in the past along with how the stock has done since.

A disclaimer - The odds of a fair die being rolled to a given number are 1 in 6. It's a fact. With stocks, on the other hand, models try to simulate real life and many factors can't be accounted for.

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