Re: FFT of stock market data?

On 31 Mar, 14:18, TreatmentPlant <NoEmailTha...@xxxxxxxxxxxxxxx>
wrote:
Hi all,

I am new to all this, so please be gentle! I am trying to do some
simple analysis of stock market data using MatLba. I would like to
apply some DSP techniques to try and identify cycles in the market
(right or wrong, this is not for discussion please, this is just a
passing interest!)

Y = fft2(x); % perform the fft

Two factors suggest you need to consider learning the tools
you try to use:

1) The application
2) You use FFT2 instead of FFT

First: Stock market data are not stationary (they
exhibit a generally increasing trend with time) and they are
not periodic (there is no way a data analysis tool would be
able to predict last week's episode in the Persian Gulf with
the 15 British soldiers captured by the Iranians).

Hence, the FFT does not work in the application.

Second: Read up on the difference between FFT, which works
for 1D data, and FFT2, which works for 2D data.

Rune

.