Many techniques from science and engineering can be applied to the art of financial modelling. We use techniques from artificial intelligence, machine learning, data science and signal procesing
Digital Signal Processing (DSP) techniques used to identify a variety of cycles over multiple time frames.
The DSP approach relies on the supposition principle in that complex wave forms are composed from multiple wave forms. This is illustrated by the graphic to show how successive waves of different frequencies can be combined to produce a complex wave form that starts to resemble a price. The DSP technology allows the process to be reversed to extract frequencies from price data.