Performance graphs and Calculus

[globulous]

How many of you use calculus to help pinpoint or predict a point when a stock may go on a run, or how long a run may last??

I just happened to be looking at a graph today and the thought crossed my mind..

 

[quantumleap]

I haven't heard of using Calculus but I have heard that people use Fibonacci sequences. Fibonacci numbers were featured in the movie "The Da Vinci Code".

 

[gynecologist]

Wish I paid more attention in school..

 

[quantumleap]

Wish I paid more attention in school..

I took 3 semesters of Calculus and 1 semester of Differential Equations and never used them after I left college.

 

[8ate]

calculus is consistently mentioned as the most least used college course

gl

:nopityA:

 

[globulous]

How would Fibonacci be used??

0,1,1,2,3,5,8,13,21,34,55.. it's just a simple formula...


Calculus studies rates of change and focuses alot on graphs, slopes, curves...
Just wondered if anyone ever applied derivates and max/min, slope/tangents to graphs as a suppliment to the more standard research methods when determining what to buy and when..

 

[quantumleap]

How would Fibonacci be used??

0,1,1,2,3,5,8,13,21,34,55.. it's just a simple formula...


Calculus studies rates of change and focuses alot on graphs, slopes, curves...
Just wondered if anyone ever applied derivates and max/min, slope/tangents to graphs as a suppliment to the more standard research methods when determining what to buy and when..

Do a Google search on "fibonacci stocks" and you will get many pages of hits that explain how this might work. A synopsis of this is that some traders believe stocks move according to fibonacci patterns. Once a person knows these patterns they can time the direction of the stock market.

 

[Illini]

If only the market were that easy. Math experts teach college and write textbooks. If they could beat the market using math, a bunch of jobs would come open in the education system.

 

[heart222]

fibinocci wasa 15th century Italian mathamatician. His original work which generated the fibinacci numbers was a study of how rabbits multiply. 1-1-3-5-etc. It can be used for targets but is not a guarantee of anything. In simple a terms a ten dollar stock has a target of 33% 13.50 if it goes thru there the next target may be 16.66 or 2/3rds etc. Its o.k for attempts to market time but dosent guarantee anything. In the long run its all about earnings.

 

[PercocetThreat]

In the long run its all about earnings.

Amen, all the charts and graphs in the world will not get you around that fact. Technical Analysis is nice for knowing when to time a buy or sell but it is all about the fundamentals.

 

[tkim11]

I would think you would have to use historical stock data to create an equation for...wait. Calc 1 wont do in this situation. Your gonna have to bust out with mutivariable Calc.

I know nothin about stocks cept you like all thing, you buy low and sell high. But I would think there has to be some form of a curve - positve and/or negative. Its not going to be a perfect curve but if you can find derivate of a certain curve..just maybe..just maybe...But finding the curve to match the data with all its variable has to be tedious and boring as shit. Good luck

 

[sunnyblue100]

It was already built into some software, pointing out the first, second, third supporting points, as well as target points.

 

[sunnyblue100]

In the long run its all about earnings.[/quote]



But reading the charts can help you to get ahead of the game, I mean knowing what the earnings will be in the future. There will always be some smart money.