Publication Date

6-2015

Comments

Technical Report: UTEP-CS-15-54

To appear in: Martine Ceberio and Vladik Kreinovich (eds.), Constraint Programming and Decision Making: Theory and Applications, Springer Verlag, Berlin, Heidelberg.

Abstract

In the analysis of dynamic financial quantities such as stock prices, equity prices, etc., reasonable results are often obtained if we only consider local maxima ("peaks") and local minima ("troughs") and ignore all the other values. The empirical success of this strategy remains a mystery. In this paper, we provide a possible explanation for this success.

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