The All Ords as a Function of Pi
Table 1: The All Ords 1937 high to 2020 high scaled to the square root of Pi.
- 74.5 * Pi^1/2 = 132.04 The high of the wool boom
- 132 * Pi^1/2 = 234.04 High of the Transistor boom.
- 234 * Pi^1/2 = 414.84 Highs of the 60’s mining boom.
- 414 * Pi^1/2 = 735.28 Right shoulder of the Fraser resources boom.
- 735 * Pi^1/2 = 1303.2 Intermediate support level post 87 crash.
- 1303 * Pi^1/2 = 2309.9 18/09/1987 All Time High 2312.5
- 2309 * Pi^1/2 = 7253.9 20/2/2020 All Time High 7289.7
In the chart above the price axis is in log base ten and the levels are marked off as log scale of Pi where each level is 3.141 times the previous, if you consider that all market movements are part of a longer term cycle of circular activity it only makes sense that the constant Pi would be somehow involved, it is after all the basis of all cyclic behavior and therefore should show up strongly in the data.
As it turns out there is a very strong correlation between Pi and the All ordinaries index, all the major and minor highs of the market in the post depression era are related to each other by Pi and its roots, if you take the first high of the Australian market after the great depression @74.5 and multiply it by Pi you get the number 234.04, which is surprisingly close to the high in the market at 239 in 1960.
If you repeat this the next number in the series is 735.28. This is also surprisingly close to the high of the Fraser resources boom at 746 in Jan 1981 and there was an intermediate high during the topping out of the market at 736
The next number in the series is 74.5 * Pi^3 = 2309.96, the exact high of the 1987 market was 2312 on the cash and 2343 on the SPI with the cash closing at 2305. The final number in the series is 7253 the recent high was on 20/2/20 @7289
So after decades of market action the same constant keeps reappearing this cannot be a coincidence.
It is no great surprise that Pi would turn up somewhere as a constant, after all it is the most basic function of money and markets to circulate hence they are circular.
This has significant implications for calibrating and modelling this data and becomes particularly interesting when considered in terms of Euler’s Proof when market trend and direction are measured in terms of growth and decay of an exponential system as measured by an exponential step function.
Greater resolution can be obtained by using the roots of pi as C = Pi^(1/2^n) which you can see in the charts below.
What we are looking at is a wave function that takes the form of a set of concentric circles where each high of a boom leg is the diameter of the next circle.
What this is telling you is that we are looking out our data in the wrong co ordinate system, in the way the major crashes line up over time they are the limit function of a series of concentric circles. In that major leg of the market like 1987 and the present is one are an order of magnitude of Pi above the one before with the intermediate steps occurring on the square root steps of pi.
The function asks as many questions as it answers, in so much as how can this be universally applied across many markets to be able to determine when the major trends are likely to begin or end and how does that fit in to the longer term ten and twenty year cycles that are clearly present in the data when you look at the history of the market in any detail.
What is clear is that will Pi be present as a constant in any differential equation that can be used to analyze the behavior of market on any time frame. This opens up the door to solving the problem on the complex plane as you would do with any other physics or engineering problem.
All Ords 1917 – 2020 Polar Form 2020 Crash Aligned to the crash of 87.
We are simply using the wrong co ordinate system to evaluate our data market by looking at it in rectangular form we are missing the main pattern of behavior by definition money circulate in market places so it is not much of a stretch to thing that we should look at history in polar form, after all time is also a circular function all clocks and time keeping is based on circles and not squares.
As it turns out like anything worth knowing in math’s and science the solution is always very simple as far as the long term trend the market goes it is nothing more than differential equation that take the form of logarithmic cycloid spiral where each major boom is one cycle of Pi higher than the last.