Chart to Scalar Theory
28 Pages Posted: 23 Mar 2014 Last revised: 3 Apr 2016
Date Written: January 1, 2016
The motivation behind Chart to Scalar is to unify stock charts and trading volume into a mathematical framework to better understand how the stock market works. This has applications such as measuring market impact; explaining how markets are inherently susceptible to crashes; demonstrating a relationship behind convex and concave stock charts, volume, and bubbles/susceptibility of collapse; and accounting for fat tails in option pricing where conventional pricing model may fail.
Keywords: stock market, option pricing, financial models
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