In the analysis of dynamic financial quantities such as stock prices, equity prices, etc., reasonable results are often obtained if we only consider local maxima (“peaks”) and local minima (“troughs”) and ignore all the other values. The empirical success of this strategy remains a mystery. In this paper, we provide a possible explanation for this success.
CITATION STYLE
Stylios, C. D., & Kreinovich, V. (2018). Dow theory’s peak-and-trough analysis justified. In Studies in Systems, Decision and Control (Vol. 100, pp. 123–128). Springer International Publishing. https://doi.org/10.1007/978-3-319-61753-4_17
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