In actual analysis, it is often necessary to know the possible state of the market trend analysis object after a period of time, which requires the establishment of a mathematical model that can reflect the changing law. Markov market trend analysis model is a method of establishing random time series model by using probability and applying it to market trend analysis.

The basic model of Markov analysis is:

X(k+ 1)=X(k)×P

In the formula, X(k) represents the state vector of the trend analysis and prediction object at time t=k, and p represents the one-step transition probability matrix.

X(k+ 1) represents the state vector of the trend analysis and prediction object at time t=k+ 1.

It must be pointed out that the above model is only applicable to Markov time series, and the probability of state transition at each moment remains stable. If the state transition probability of time series changes at different times, this method is not applicable. Because it is difficult for practical and objective things to keep the transition probability of the same state for a long time, this method is generally suitable for short-term trend analysis and prediction.