Thursday, March 29, 2012

Using Fourier Transform to study relationship between Politics and Oil, By Professor Tom Therramus

This is an interesting piece of article from Professor Tom Therramus which first appeared in oil-price.net. It shows how by using Fourier Transform, analyst are now able to predict the relationship between oil and politics. It is not surprising because all these events are somehow influenced by 'market cycles'. As for your information Fourier Transform has been used in many  physics and engineering applications. It is used in measuring aircraft wing vibrations, processing signals such as light waves, seismic waves, radio waves and also images.

 As far as i know, it has already been adapted into stock market analysis by studying the waves.Technical analyst from large brokerages and investment banks are using such tools to predict market movements. Stock market is known to run on waves presumably like a sine wave, so by incorporating Fourier Analysis as a tool to study the waves greatly enhances stock market predictability. Anyway below is the link for the article,

http://oil-price.net/en/articles/is-oil-fueling-rise-in-political-partisanship.php

No comments: