Re: FW: How to use FFT

[gordon@xxxxxxxxxxx (Guy Gordon)]

Now I would use the results of FFT in just the oposite way.
If a stock shows a pronounced cycle (say 15 days), I would use a
Moving Average of TWICE that (30 days) in order to damp out the cycle
and see what else is in there.

ANY moving average of less than 1/2 the FFT cycle will show that cycle
clearly.  It need not be exactly (or even close to) 1/2 cycle.

On Mon, 28 Apr 1997 18:03:36 -0400 (EDT), you wrote:

>FFT (Fast Fourier Transform) is helpful to determine the best
>moving average to use with a tradeable.
>
>Load about 300-500 data points. Then Plot FFT. You should
>see three tiers. A Long, medium and short line. If you divide each by
>2 you will get what may be the best moving average to use with that
>tradeable. (e.g. If the first "tier" is 120 long, then use a 60 period M.A.,
>etc.)