Wave Theory - FFT and Correlation Analysis

7 de ago. de 2020

The difference between waves in the ocean and on a lake is that they run at a different frequency and phase when compared to each other. Waves in the ocean are much larger and occur at a lower frequency than waves on a lake and of course, both are either in phase or out of phase at any given time. Well, crypto and the stonk market are no different! We can see the wave frequency of any market using an FFT (white dash sine wave extension) and in this case, a correlation & confidence interval (red dash sine wave extension) to see how equal the two phases (DJI and BTC -- 1 being in phase and 0 being out of phase). As you can see the FFT cycle lines up well with the fractal shown in orange showing us we should hit the previous ATH of 20k sometime around Jan 2021. However, you can see the peak correlation (red dash sine wave extension) with DJI will occur a bit earlier on Oct 2020. This indicates DJI will decorrelate from BTC (phase shift) and most likely start to crash while BTC continues its upward movement given it's FFT cycle (white dash sine wave extension) peaking sometime around Jan 2021. You can apply the same analysis to DJI to verify the theory it will start its downtrend sometime Oct 2020. Good luck and remember to hit the like/follow button if you agree with this idea! Please ask questions if you don't understand the analysis. I will be happy to answer!

Disclaimer: The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.