Fourier Wave
Overview
In Signal Processing, Fourier analysis is used as a way to break up complex waves (cycles) into discrete sinusoidal components. The process uses the Fast Fourier Transform to examine the closing prices of the data and determine the cycles that have the highest correlation to the cycles in the data.
The Fourier Wave tool automatically selects the top 3 coefficients and builds a wave based on them. The wave is not designed to reflect or predict exactly what will happen in a security but rather give a general idea as to the cycle pressure at any point in time.
For more information on the Fourier Transform see here.
To add the tool to your chart, select the tool from the Fourier tool group, and left-click on the chart to add the tool. Optuma will then draw the tool in a window below the chart using the default settings.
Scripting Function: FOURIER()
Actions & Properties
Actions
Copy Data to Clipboard: Will copy the tool’s values to the clipboard which can then be inserted into a spreadsheet, for example, allowing for further analysis.
Add to Toolbar: Adds the selected tool to your custom toolbar.
Apply Settings to All: When multiple Fourier Wave tools have been applied to a chart, page or workbook, this action can be used to apply the settings of the one selected to other instances of the tool. This is a great time saver if an adjustment is made to the tool - such as line colour - as this allows all the other Fourier Wave tools in the chart, page or entire workbook to be updated instantly.
Copy Tool: Allows you to copy the selected tool, which can then be pasted onto a different chart window.
Move to Back: If the tool is displaying in front of other tools or indicators clicking this action will move the tool view to the background.
Move to Front: If the tool is displaying behind other tools or indicators on the chart, clicking this action will bring the tool to the forefront.
Restore Default Settings: Click this action if you have adjusted the default settings of the tool, and wish to return to the standard properties originally installed with Optuma.
Save Settings as Default: If you have adjusted any of the tool’s properties (colour, for example) you can save the adjustments as your new default setting. Each time you apply a new Fourier Wave to a chart, the tool will display using the new settings.
Delete: Deletes the tool from the chart.
Properties
Tool Name: Allows you to adjust the name of the tool, as it’s displayed in the Structure Panel.
Max Cycles: Sets the maximum number of cycles to be used in the tool’s calculation, the default value is 200.
Coefficient Type: The Coefficient can be set to either Automatic or Defined.
Defined Coeffs: If the Coefficient Type is set to Defined, you can then manually enter the coefficient to value to use.
Fourier Coeffs: When the Coefficient Type is set to Automatic, the Fourier Coeffs value will be displayed which can be increased or decreased manually.
Use Logarithmic Values: When selected Logarithmic values will be used, is enabled by default.
Offset: Moves the tool forward or backwards in time. The offset is measured in bars, so a value of 2 will push the tool forward 2 bars and -2 will move the tool back 2 bars.
Plot Style: Allows you to change how the Fourier Wave is displayed on your chart. There are 6 options available: Line, Dot, Histogram, Step, Shaded, Shaded Step.
Line Style: The Line Style property allows you to adjust the type of the line displayed. There are 8 options available: Solid, Dots, Dash, Dash Dots, Long Dash, Long Dash Dot, Long Dash Dot Dot and Stippled.
Line Width: Allows you to adjust the width of the line. Moving the slider bar to the right increases the thickness of the line.
Line Colour: Allows you to select the colour of the line. Clicking on the drop down arrow will display a colour swatch. Locate the desired colour and left-click it once to select it.
Fill Up / Down Barrier: When the Plot Style is set to Shaded you are able to adjust the barrier value, i.e. the margin between the two correlation plots. The default value is 0.00.
Fill Up Colour: When the Plot Style is set to Shaded you are then able to alter the Fill Colour for the tool.
Fill Down Colour: When the Plot Style is set to Shaded you are then able to alter the Fill Colour for the tool.
Tool Transparency: Use this slider bar to adjust the transparency of the tool. Moving the slider to the left will increase the transparency of the tool.
Visible: Un-tick this checkbox to hide the tool from the chart.
Show In Price Scale: When selected the current Fourier Wave value will be displayed in the Price Scale.