V. 20:7 (58-61): Fast Fourier Transformation by Amy Wu

Fast Fourier Transformation by Amy Wu

For a long time, Fourier transforms were used mostly by engineers. Transforms were used to study sound waves, frequency vibrations, and other repetitive occurrences. Since then, Fourier transforms have been applied to a number of other diverse fields. Aerospace engineers use them to study a plane’s wing-tip vibrations during flight, while musicians use them to identify patterns when strumming musical instruments. It was only a matter of time before someone used Fourier transforms for technical analysis, specifically, a type of calculation called the fast Fourier transform (FFT). Jack Hutson and Anthony Warren of STOCKS & COMMODITIES were early proponents of applying fast Fourier transforms to price movements in security prices.