Dollars and Jens
Monday, July 11, 2005
brownian motion
A thought I've been throwing around for a couple months: a simple homoskedastic brownian process isn't white noise; it's pink noise — low frequencies predominate over high frequencies. It's not a perfect model for the stock market, then, but it does correctly predict the existence of Elliott Wave Theorists.

I suppose I should mention that I find Elliott Wave Theory inherently funny. Phrenology, too.

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