This research aims to improve the accuracy of power spectrum estimation of
magnetotelluric signal by using continuous wavelet transform. Three statist
ic method, global average, wavelet coefficients shrinkaging and significanc
e test, are used to estimate the power spectrum. Empirical formulas are giv
en for the transformation between wavelet scale and Fourier frequency. The
algorithm is also described in detail. The numerical tests show that the es
timation is robust to stronger white noise and local correlated-noise, and
significantly decreases the requirement for the recoding length.