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Thread: Market Crashes and Log Periodic Power Law Behavior

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  1. #1
    Mike,
    It would be great if you could post some charts of more recent times. I suppose that everyone will like to see the progress of the LPPL curve (in a Sp500 chart) this year.
    Great work.

    Regards
    Artur

    Quote Originally Posted by mscott View Post
    Obvious question. I see something that looks like log periodic activity since the 2009 bottom however I don't really find the super-exponential growth over the period. So today's market conditions don't appear to meet a pre-crash set up. The last super-exponential period I see was going into the flash crash and possibly into September 2012. The September 2012 slightly super-exponential period preceded a normal correction and not what I would define as a crash.

  2. #2
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    Quote Originally Posted by Artur View Post
    Mike,
    It would be great if you could post some charts of more recent times. I suppose that everyone will like to see the progress of the LPPL curve (in a Sp500 chart) this year.
    Great work.

    Regards
    Artur
    Artur,
    I need to build a flexible tool for this. Fitting a seven parameter equation to a set of noisy data takes a while to find an acceptable fit. I have explored other times and find the process is more than interesting. I have not done the first step for the current market which is to determine if a power law fit is better than an exponential law fit to the S&P. Until I do this I won't know if the LPPL function fit means anything.
    Mike Scott
    Cloverdale, CA

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