STOCKS & COMMODITIES magazine. The Traders' Magazine

Register or Log In — Traders.com and STOCKS & COMMODITIES magazine

  |  SEP 1994

SIDEBAR: Fourier Analysis

SIDEBAR: Fourier Analysis Market data is considered to be a complex wave form composed of cycles with different lengths or frequencies. When you look at a price chart, you can see that there are upward trends with countertrend declines or downward trends with countertrend rallies. Each price movement has a varying number of days between consecutive tops and bottoms; in other words, the price action appears to be the sum of cycles with different cycle lengths. A fast Fourier transform (FFT) of a complex wave form such as market data decomposes the time series into its underlying frequency components. A Fourier power spectrum is simply a plot in histogram form of the cycle power (y-axis) versus frequency (x-axis).

by Technical Analysis, Inc.

Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99

NOT A SUBSCRIBER?

To continue reading, sign-up for trial access to Traders.com and the S&C Archive37,000 pages of trading ideas!




After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.



DEPARTMENTS: Advertising | Editorial | Circulation | Contact Us | BY PHONE: (206) 938-0570

PTSK — The Professional Traders' Starter Kit
Home — S&C Magazine | Working Money Magazine | Traders.com Advantage | Online Store | Traders’ Resource
Add a Product to Traders’ Resource | Message Boards | Subscribe/Renew | Free Trial Issue | Article Code | Search

Copyright © 1982–2024 Technical Analysis, Inc. All rights reserved. Read our disclaimer & privacy statement.