Stock mechanics: A general theory and method of energy conservation with applications on DJIA

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Tuncay C.

INTERNATIONAL JOURNAL OF MODERN PHYSICS C, cilt.17, sa.11, ss.1679-1690, 2006 (SCI-Expanded) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 17 Sayı: 11
  • Basım Tarihi: 2006
  • Doi Numarası: 10.1142/s0129183106009138
  • Dergi Adı: INTERNATIONAL JOURNAL OF MODERN PHYSICS C
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • Sayfa Sayıları: ss.1679-1690
  • Orta Doğu Teknik Üniversitesi Adresli: Evet

Özet

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 the 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.