Mathematics of Market Movement
Posted: Thu Jun 22, 2006 12:43 am
Disclaimer: I have a horrible background in mathematics so your criticisms, ideas, and corrections are greatly appreciated.
I spend most of my time developing formulas to time the market based on key principals of physics and trig. I personally believe that the market is mathematically sound, and that the biggest players in the markets work from a formula that times the market perfectly or at least near perfect given the conditions of supply and demand.
Most of my work is based on the following ideas:
1) The markets supply all necessary variables at any point in time.
2) These variables can be applied to the "correct" formula at any time in order to discover future price movement.
3) The formula is simplistic, to the point that most research is far too complex to discover the true answer.
There are a few more but those present the general concept.
I like to think of the market, like some others, in terms of waves. Some are larger than others but all the waves have a highest and a lowest point. In recent years I have applied laws of physics to these waves in order to generate some astounding results, however generating these results is time consuming and currently time is not something I have when trying to make a split second entry or exit decision.
My furthest success has been in utilizing the velocity, acceleration, and thrust of physics to determine a move's future price given the current variables. My real question here is if anyone is interested in these same ideas and would like to share work along these lines? There is little sense in taking my time to further present the work unless others would like to see it further developed.
I spend most of my time developing formulas to time the market based on key principals of physics and trig. I personally believe that the market is mathematically sound, and that the biggest players in the markets work from a formula that times the market perfectly or at least near perfect given the conditions of supply and demand.
Most of my work is based on the following ideas:
1) The markets supply all necessary variables at any point in time.
2) These variables can be applied to the "correct" formula at any time in order to discover future price movement.
3) The formula is simplistic, to the point that most research is far too complex to discover the true answer.
There are a few more but those present the general concept.
I like to think of the market, like some others, in terms of waves. Some are larger than others but all the waves have a highest and a lowest point. In recent years I have applied laws of physics to these waves in order to generate some astounding results, however generating these results is time consuming and currently time is not something I have when trying to make a split second entry or exit decision.
My furthest success has been in utilizing the velocity, acceleration, and thrust of physics to determine a move's future price given the current variables. My real question here is if anyone is interested in these same ideas and would like to share work along these lines? There is little sense in taking my time to further present the work unless others would like to see it further developed.
repeat themselves at all levels of magnitude.
