Exploring the Secrets of the Market: Derivatives are Everywhere

This article introduces how to use derivatives to calculate the second, third, and fourth derivatives of prices, and explains their applications in the financial market. The first derivative represents the change in velocity, the second derivative represents the change in acceleration, the third derivative represents the change in the rate of change of acceleration, and the fourth derivative represents the change in the rate of change of acceleration. The article also discusses the characteristics of derivatives as high-pass filters and the differences in cutoff frequency and corner frequency for different orders of derivatives. Finally, the article mentions some popular technical indicators that use the concept of derivatives and emphasizes the need for smoothing or other processing techniques to reduce the impact of errors and noise in practical applications.

blackcat1402
blackcat1402
This cat is an esteemed coding influencer on TradingView, commanding an audience of over 8,000 followers. This cat is proficient in developing quantitative trading algorithms across a diverse range of programming languages, a skill that has garnered widespread acclaim. Consistently, this cat shares invaluable trading strategies and coding insights. Regardless of whether you are a novice or a veteran in the field, you can derive an abundance of valuable information and inspiration from this blog.
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