stock mechanics a general theory and method of energy conservation with applications on djia精品.pdfVIP

Stock mechanics: a general theory and method of energy conservation with applications on DJIA Çağlar Tuncay Department of Physics, Middle East Technical University 06531 Ankara, Turkey caglart@.tr Abstract A new method, based on the original theory of conservation of sum of kinetic and potential energy defined for prices is proposed and applied on Dow Jones Industrials Average (DJIA). The general trends averaged over months or years gave a roughly conserved total energy, with three different potential energies, i.e. positive definite quadratic, negative definite quadratic and linear potential energy for exponential rises (and falls), sinusoidal oscillations and parabolic trajectories, respectively. Corresponding expressions for force (impact) are also given. Keywords : Potential and kinetic energy; Equations of motion; Force and acceleration; Power law; World markets; Oscillations; Crashes PACS numbers: 89.65.Gh 1. Introduction A wide diversity of literature emphasizes randomness in short-range behavior of market. Yet, short- and long-range behaviors may differ in many characteristic aspects. We claim in the present work that, there may exist some fundamental and deep lying structures, which are not displayed in short-range fluctuations. Similar to the difference in several properties of shell and core electrons in atom, and the difference between surface and bulk properties of crystal, and so forth, the pronounced deeper structures in time series may be quite different than those of short-range states. We propose that, some quantities as a function of value (price) χ(t) of the index (share) and its nth-time derivatives with arbitrary n, may be conserved during market journeys (composed of fluctuations, oscil