 Let's see the raw stock chart again. There are some high frequencies on
this.
7days moving average cuts high frequencies. Coefficients of FIRFIL(U_1W)
consist of 7 lines and every value is 1/7 = 0.143. (See "coeff1w.txt")
30days moving average cuts mid-high frequencies. Coefficients of FIRFIL(U_1M)
consist of 30 lines and every value is 1/30 = 0.0333. (See "coeff1m.txt")
90days moving average cuts mid-high and even some low frequencies. Coefficients
of FIRFIL(U_3M) consist of 90 lines and every value is 1/90 = 0.0111. (See
"coeff3m.txt")
Please understand that Moving Average is a sort of digital filter and that
cuts relatively high frequencies and leaves low frequencies. If you make
Xdays moving average, coefficients of the filter consist of X lines and
every value is "1/X". For example, see 14days, 60days and 180days moving average.
To change the coefficients file, please double-click FIRFIL then click
"Change Parameters" and "Change Coefficients".
That's it for this class. In the next class, we will execute FFT on the stock chart and analyze it.
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