Visualizing the log-periodic pattern before crashes

Authors
Vandewalle, N Ausloos, M Boveroux, P Minguet, A
Citation
N. Vandewalle et al., Visualizing the log-periodic pattern before crashes, EUR PHY J B, 9(2), 1999, pp. 355-359
Citations number
25
Categorie Soggetti
Apllied Physucs/Condensed Matter/Materiales Science
Journal title
EUROPEAN PHYSICAL JOURNAL B
ISSN journal
14346028 → ACNP
Volume
9
Issue
2
Year of publication
1999
Pages
355 - 359
Database
ISI
SICI code
1434-6028(199905)9:2<355:VTLPBC>2.0.ZU;2-0
Abstract
We present a method for visualizing the pattern which we believe to be a pr ecursor signature of financial crashes (or ruptures). The log-periodicity o f the pattern is investigated through the envelope function technique. Thre e periods of the Dow Jones Industrial Average (DJIA) are investigated: 1982 -1987, 1992-1997 and 1993-1998. The presence of a rupture in the end of 199 8 is outlined from data taken before the end of August 1998.