Old ceiling, new floor: now it passes, barely
A popular belief: “once the price breaks through a ceiling, the old ceiling becomes the new floor.” It is said the other way round too: a broken floor becomes a ceiling.
The data: gold and silver. 166 times, the price came back to a daily, weekly or monthly level that had switched sides like this. It turned back 58% of the time and broke through 41%. The same count and the same share as a week ago.
The rule, set before the check, asks for at least 57% in both halves of the history. A week ago the later half fell short, and the verdict was no. This week the history is cut into halves differently: 81 tests in the earlier half, 85 in the later. Both halves read 58%. By the rule, it passes.
No new tests were added. The split between the halves changed, and a no turned into a yes. That is what a verdict decided by a 57% bar looks like with 166 tests: it can flip on the split, not on the market.
When a verdict can flip like this, how much weight would you give it?
