Mesa Sine Wave
The MESA Sine Wave utilizes 2 sine plots to depict if the market is in a trend mode or in a cycle mode. They call it a trend mode if the plots start to wander the market.
MESA SINE WAVE
MESA is an acronym for Maximum Entropy Spectral Analysis.
Quote: "The sine wave is the mathematically smoothest waveform describing a cycle and harmonic motion." by John F. Ehlers in his book "MESA and Trading Market Cycles".
FFTs are based on the principal that any finite, time-ordered set of data can be approximated by decomposing the data into a set of sine waves. Each sine wave has a specific cycle length, amplitude, and phase relationship to the other sine waves.
The general principle is that you can approximate any finite time series by breaking the data down into a set of harmonic sine waves of differing pitch. Usually, analysis of security data needs to be 'detrended' before a Fourier Transform is any use.
These indicators are usually called momentum oscillators because the indicator line or histogram 'oscillates' (or swings) up and down between or around specific values - much like a sine wave on an oscilloscope.
Look at the metal you want to invest in and then at a company that mines that metal. You will see some companies have an upswing while others are falling. Look for a pattern in the sine wave and invest on the beginnings up an upswing.
 See also: Trading, Market, Cycle, Indicator, Wave
  
|
RSS
