Price Dumbells

By Steven J Grisafi Phd, Steven J. Grisafi

Price Dumbells
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All of the natural laws of the universe are stochastic. This little known fact is the premise for Price Dumbbells. The random behavior of financial markets is no different from the seemingly deterministic behavior of the natural world. The apparent deterministic behavior of physical processes is an illusion resulting from the limited precision and accuracy of measurements. Price dumbbells indicate the method whereby stochastic processes give their illusion of deterministic behavior. They present a simple, yet powerful, method for individual investors to monitor market performance with an eye towards decision making. Rather than being a hindrance, the random behavior of financial markets can be modeled and analyzed in the same manner as is implemented today in both classical and quantum mechanics. Price Dumbbells brings to finance the understanding that randomness in the world is the rule, not the exception. Here the reader can find how science and engineering conquers randomness.