Hi,
The FFT is generally
used in electronic circuits as a signal processing device.There the main
criteria is frequency and the application frequencies have a range (band
width) for the application under test so there the signals can easily be
processed to form a single wave type by using hormonics at each step to
furthur refine the wave very efficiently.Using this on the stock markets is
going to give teriffic lag as mentioned because our data sets
have a huge range and also volatility.Even the end point FFT will give a
lag.More over there are many varieties and mutants of the Fourier series
(wavelet is one)which are designed for specific applications and they are
quite complicated and logically thinking trying to apply them
for our stock and commodities datasets i feel is not very
efficient and also time consuming when there are other simpler methods
around .I have! nt seen much application of the Fourier or its
derivatives in stock trading.
Try this simple 2 lines mathematic
formula : should give better result than any Fourier series
Form some simple
rules for this and you can use it for trading long term ,intermediate
term short term and even day trading .The main thing is
the rules.
Its a sort of
multi guppy lines: And there is no need for extra memory.(tee
hee).
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++
for
(
x=1;x <=6; x ++)
{
K=
EMA((H+L+C)/3,10);
S1=
2*(K-Ref(K,-1))/(K+Ref(K,-1));
RS=
100*EMA(S1,x);
Plot
(RS ,
"\nRSL_" + WriteVal ( x , 1.0 ) , colorTurquoise + x , 1 ) ;
//Graph0=RS;
}
PlotGrid
(-1,colorDefault);
PlotGrid
(0,colorDefault);
PlotGrid
(1,colorDefault);
GraphXSpace
=5;
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++
For end of day quotes the values
mostly range between -1 and +1 so we have a range .
Rules:1. The
main slope is RSL-1.When RSL-1 and RSL-2 move very fast compared to their
previous values they signify a peak (intermediate,long term, etc) depending on
the time frame you are using.
Rule 2. Check
for divergences:Mostly they never fail.
These are the basic rules.You can form some more by experimenting.Try for
daytrading,with stop losses at previous top- bottom. works better
for shorter time frame.
Using for different time spans:Just click
on day , week , month,and intraday periods on your charts and you have your
trading time frame.The rules are the same for all.
If
you want to trade say daily look at the weekly chart and see if RSL-1 and
RSL-2 with RSl-1 pulling away from the rest ,have made a sharp peak or trough
and trade from there on the daily chart.
So simple.Easier than
cranking the brain over some fourier.I would rather spend time with my
fox-terrier.
BTW: This was basically
Dimitris idea in another indicator i applied here.
Have fun.
----- N !!
bilbo0211 <bilbod@xxxxxxxxxx> wrote:
>>
You asked TJ to implement FFT--guess which compiler he uses!
<<
I guess Visual C++.
FFT has been around for forty
years. There are many libraries
available. The fftw.org site has a
list
(http://www.fftw.org/benchfft/ffts.html)
of 40-50 (some free, some
not) that they benchmarked against for speed
and accuracy. Any one of
them would work and I am sure some either come
in binary form or work
with Visual
C++.
Bill