Take a graphic artist and show him data points on a graph. He’ll likely view it through the lens of graphic design. He may even try to envision the picture hidden beneath those seemingly random dots as he attempts to decode the picture.
Now take an investor in the stock market and show him the same data points on a graph. He’ll likely have a unique frame of reference, and might just miss the hidden picture in all those daily or weekly movements up and down as stocks rise and fall with every small bit of news that could impact the market.
The traditional approach of focusing on individual equities won’t get an investor very far down a sentient path to interpreting data, which reveals the future movement of a particular equity. However, if you connect the dots of each data point in a historical continuum, key repeating patterns are revealed. It’s not through magic, because it’s based on the science of interpreting wave data.
Consider this quote from Marine Denolle, who is the lead author of a scientific endeavor on how to pick up signals for waves created by earthquakes: “There’s a push toward using this noise and turning that into information that you would not have had otherwise,” says Denolle. “We’re using that signal in a very different way, trying to predict ground motion.”
Note that this study is using signals to interpret movement on a continuum so as to gain insight into the future by extrapolating the data. Is the picture becoming a little more clear, investors? Wave data is based on science.
So what does this mean for the average investor? Most are approaching their investment strategy from a standpoint of weakness. They are not realizing the benefit of wave science applied to equities. Each blip of movement on the screen lends a small piece of pertinent data, yet many investors limit themselves to only viewing the incomplete picture. Enlarge your view and you can make predictions that will help your portfolio grow!