Hi
I got an answer on how deal the central banks, they prefer to know which function is used in term of a logarithm way
He said to me :" Standard deviations or logarithms both base 10 and base e. Logarithms was the preferred method from the 1300's to 1700's then base e was used. Then Gauss came in 1809 to introduce standard deviations. Central banks still use logarithms today when they enter and exist the market"
so, IMHO, central banks work on daily and weekly TFs, they build functions, they do not want to know which are the inner trend.
It could be this solution : - a function given by Close[0] to Close[n] in daily TF, w/ the direction provided by the news, acting as a confirmation
so, the next Close[-1] [-2] to[-n] can be determined by the log_e[y] of the function found above
in this system, no inner trend is calculated, this is a raw function, its own root.
- Not sure if I am totally right here..
Comments
To solve an exponential function, you must create equal bases, solve for the exponent, and then check your work. If two or more logarithmic expressions with the same base are added, multiply the arguments to get the sum.
When two or more Logarithmic expressions with the same base are subtracted, the arguments may be divided. The exponent on the argument of a logarithmic term or factor is also the coefficient of that entire term or factor. The graph of a logarithmic function is a reflection of its exponential function counterpart across the line y = x.
A logarithmic function is a function written in the form x=logb(y), where b is a subscript. As suggested by the name, an exponential function is a function with a variable in the exponent. The base of the function must be a positive real number not equal to one. Example: f(x) = 5^x Here is an example of the graph of an exponential function The graph of f(x)=2^x is shown here Graphing these functions is easy! Just make sure to put parenthesis in the correct places to ensure that your graph is accurate.
For example, to graph f(x)=5^x+1, make sure to enter 5^(x+1) if the one is with the exponent. For example, to solve for 5^x=5^4, since the bases are the same, x will equal 4. If the function is written with 5^x on one side but 625 is written on the other side, then you can make 625 an expression with a base equal to 5^x. The new expression would be 5^4.
Therefore, you would be able to easily see that x=4. No matter what function you are dealing with, the first step will always be to make the bases equal. Once the bases are equal, they cancel out and you can solve for the variable by only dealing with the exponents from both sides. For example, to solve (1/729)=81^x, first start with simplifying the denominator of the fraction and 81.
They both have a common base of 9. The new equation will be (1/9^3)=9^2x. You can further simply the fraction by turning it into 9^-3=9^2x. Since the bases are now equal, you can cancel them out.
You will be left with -3=2x. X therefore equals -3/2. Check your work by plugging in the value of x in the function, and you will find that both sides are equal. If you are working with an expression that contains a square root, you can cancel it out by multiplying the exponent by 1/2.
For example, (sqr rt of 14)^4x=14^(1/2)4x=14^2x. Quotient Property logb x + logb y = logb xy
For example, log3(2)+log3(x)+log3(10) would equal log3(20x).
Another way this property can be useful is when you have to find the value of x in a logarithmic expression in which all of the logs have the same base. For example, log6(x)+log6(18)=log6(36) can be turned into log6(18x)=log6(36). Since the logs are equal, they will cancel out and you will be left with 18x=36. therefore, x=2. logb(x)-logb(y)=logb(x/y)
For example, log5(6)-log5(4) would equal log5(6/4) Another example is when you have to use both the quotient property and the product property to solve a given function.
An example of this is log2(5)-log2(x)+log2(4). First, use the quotient property, so you have log2(5/x)+log2(4). The use the product property, so you have log2(20/x). Since the expression is not set equal to anything, it can not be simplified further. If you are dealing with an expression that is set equal to another expression, then you should be finding the value of the variable For example, log7(12)-log7(2x)=log7(2) can be solved for x. First simply the first side to log7(12/2x)=log7(2). Since the bases are equal, they cancel out and you are left with 12/2x=2. Multiply each side by 2x to get rid of the fraction, and you will be left with 12=4x. Therefore, x=3. logb(x^y) = y logb(x) A coefficient of a logarithmic term can be moved to the exponent of its argument and vice versa. For example, 3log5(x) can be written as log5(x^3) Another example would be log3(x^2), which can be changed to 2log3(x) This property can also be useful when solving for x. With the equation 2log7(x)=log7(49), use the power property to change the function 2log7(x) to log7(x^2). Then, the logs will cancel out and you will be left with x^2=49. Therefore, x=7. In order to graph a logarithmic function that contains a base not equal to 10, you must use the change of base formula. The blue function is an exponential function, while the red function is a logarithmic function To use the change of base formula, you divide the common logarithm of the argument by the common logarithm of the base. For example, log5(x) would be written as (log(x))/(log(5)). To graph this, you would go to GeoGebra and enter f(x)=lg(x)/lg(5). The resulting graph would look like this. If the x of the function is not alone, like in the function log4(x-6), following the change of base formula, you would enter f(x)=lg(x-6)/lg(4) in GeoGebra. If there is a number after the x, but it is not included parenthesis, such as log4(x)-2, you still use the change of base formula, and then just enter the the -2 after the fraction.
Therefore, in GeoGebra, you would enter f(x)=lg(x)/lg(4)-2.
In this function, x is the power, b is the base, and y is the argument The common logarithm has a base of 10, and is simply written as x=log(y) A log with base e is written as x=ln(y)
A logarithmic equation can be changed into an exponential equation by using the form x=logb(y) = y=b^x.
For example, log9(81)=x can be written as 81=9^x. Therefore, you can solve for the x and find that x=2.
Therefore, the basic steps for solving a logarithmic equation are to rewrite the variable in exponential form, solve for the variable, and then check your work. Another example would be when the base of the logarithm is a variable. For example, logx(36)=2. First, rewrite the function as an exponential function. It would become 36=x^2. X therefore equals 6
Everybody, check the words from the file I just uploaded and tell me what you think about
I wonder why the banks would use this.
I saw this post from Brian on Streetnet (I asked him how to describe the logarithmic method from Central banks). He wrote
"Bank to bank, forecasts are so different but its in their methods. Take Societe General. They use 5 indexes to forecast. Their best index is Spot price minus forward rate. That's it but highly accurate not perfect in entry and exists but profitable in returns of like 5% a week, month. Don't remember exactly. factor 5% on gabillions though.
Take HSBC. They forecast based on Trade Weight Indices and they use a volume weight. These guys are all over the board in accuracy.
Take UBS. These guys are accurate not perfect but highly respectable accurate. They use pure math, may account for accuracy.
Danske Bank. These guys use Relative Strength and DMI. Not totally accurate but okay. All the Nordic nations and Banks like this method.
Some banks look at monthly averages, some change currency prices in line with basis points from a bond yield. And then the question. At what exchange rate was the starting point of forecast. If you look at range prices only, they change daily with prices. "
Bank movment
JPMorgan has bought Bloomberg and Merry Lynch has bought Reuters (Reuters got also TIBCO 20 years ago)
So, now, JPM and ML can get access to immediate news, but also can manipulate them by hidding them to the public, or modify their contents. Banks are everywhere...., in political domains, religious areas, and of course in the economical world