The relativistic market speed is based on an analysis of the relativistic market change. It is a scaled value that fits a wave summation from a wave matrix bidirectional mean averaging system into a range of 0 to 120; where a speed of 60 is the average cruising speed. For this demonstration we will be examining the Dow Jones Industrial Average across the span of time from 1896 May 26 to the most recent date of 2014 Jan 24 as the complete speed analysis, however, we will focus in on this century for charting data.

The analysis begins by using the relativistic market change on each day’s close compared to the previous day’s close. Table 1 shows the first and last week of our time span with the close values and relativistic market change; negative relativistic change is a loss, positive is a gain.

We can plot this century’s data, 2000-01-03 to 2014-01-24, and see the variation in the relativistic change for different market events. Figure 1 shows the Dow daily close values and relativistic market change for each day. The relativistic change shows the immediate response and magnitude of change in the market value for the different events, like the 2008 market crash. If we want to see the trends in relativistic change, we need to analyze the relativistic change using an iterative process of what is known as Bidirectional Mean Averaging to get a Wave Matrix that is used to create the relativistic market speed. The bidirectional mean averaging smoothes the data in a wave matrix format. Waves in the wave matrix are summed together and scaled to fit a range from 0 to 120; giving a general trend in the data that might not be easily seen in the immediate relativistic change. Information the Bidirectional Mean Averaging, The Wave Matrix and downloadable tools for Excel can be found here at the Lottery Post. We’ll post some links at the end of this blog.

When the bidirectional mean averaging is applied and waves 1 through 8 in the wave matrix are summed, we can see in figure 2 the subtle trend changes in the relativistic change.

This view is still a little hard to see the variation well enough, so, we’ll remove the relativistic change values and change the scale of the relativistic change to a relativistic speed reading that goes from 0 to 120. A speed reading of 60 is equivalent to a reading of 0 on the relativistic change scale. Figure 3 shows the new scale and now we can clearly see the subtle changes in market value as a relativistic speed reading. The relativistic market speed is calibrated to the time span of 1896-05-26 to 2014-01-24 and the entire chart has been previously posted in an earlier blog. What we have found is, a speed reading of 40 to 60 indicate a market correction, 20 to 40 indicate a market crash, and 0 to 20 indicate a market catastrophe.

Bidirectional Mean Averaging and The Wave Matrix

The Wave Matrix - Excel 2007 Addin

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ZIP File - ftp://www.jadexcode.com/excel/addins/JADEXCODExcel2007AddInSetupFiles.zip

Self Extracting ZIP - ftp://www.jadexcode.com/excel/addins/JADEXCODExcel2007AddInSetupFiles.exe