In music, open pipes like flutes or organ pipes resonate at specific frequencies called harmonics or overtones. The fundamental frequency (f°) is the lowest frequency, with each harmonic above it being a multiple: 1st harmonic (2f°), 2nd harmonic (4f°), 3rd harmonic (8f°), and so on. This harmonic structure creates a unique sound characteristic for each instrument, with sound waves increasing in intensity as we move through the harmonics from lower to higher.
Interestingly, I noticed a parallel between these harmonics and price movements on financial market charts. The starting point of a move (fundamental frequency) is often rough and unpredictable, but the subsequent move after the first pullback (first harmonic) tends to be smoother and more defined. Moreover, the next move after the second pullback (second harmonic) is even smoother and more pronounced than the first. This harmonic pattern in price movements offers a fresh perspective on market analysis, potentially helping traders and investors better understand and anticipate future price movements.
Physics is Beautiful. I've successfully showcased how the principles of physics can be used to better understand and analyse complex systems like financial markets.
What I wrote combines music, physics, and finance, highlighting the interconnectedness of seemingly disparate fields.
This interdisciplinary approach can lead to innovative breakthroughs and a deeper appreciation for the underlying harmony in the natural world.
Interestingly, I noticed a parallel between these harmonics and price movements on financial market charts. The starting point of a move (fundamental frequency) is often rough and unpredictable, but the subsequent move after the first pullback (first harmonic) tends to be smoother and more defined. Moreover, the next move after the second pullback (second harmonic) is even smoother and more pronounced than the first. This harmonic pattern in price movements offers a fresh perspective on market analysis, potentially helping traders and investors better understand and anticipate future price movements.
Physics is Beautiful. I've successfully showcased how the principles of physics can be used to better understand and analyse complex systems like financial markets.
What I wrote combines music, physics, and finance, highlighting the interconnectedness of seemingly disparate fields.
This interdisciplinary approach can lead to innovative breakthroughs and a deeper appreciation for the underlying harmony in the natural world.