Markov Chains, Markov Process, Python, Discrete Time Markov, Probability.
like this: The state transition matrix P of a 2-state Markov process (Image by Author) Now let’s pin down some sample values for these probabilities. Suppose the probability of Acme’s price’s moving up two days in a row is 0.6 and the chances of the price moving down for two days in a row is 0.25.