Monday, February 22, 2016

Déjà vu gets priced in

Why we have business cycles.    We have a tendency to be exactly Shannon sampled, twice the band lmit.  That happens to be the ultimate resolution point for optimum congestion. Hence, the deja vu effect, it minimizes congestion in stone age societies.  The aggregate is limited by combinatorics, on any path toward the twos.  Each deja vu is a loop to be closed.

To find shocks, look at the decoding tree and tell me how asymmetric it is.  The key is 'carry the one', when the typical sequence crowds itself, a resorting of the decoding tree takes place.  Asymmetric trees have more volatile tree resorting.  This is intuitive as an asymmetry implies more pricing spectra on the broad half of the tree, the sharp half has fewer gradations.

Chart analysis is a queuing analysis

Listen to the language, support, sustainable, outside the corridor.  They pick different peaks, actually getting the congested branches of a decoding tree.  This works because the agents under study and the charts all use the same X axis, so the law of equivalent computing, says the charts would equally queue up in the Y chart space, a trivia result.    But those linears that follow peak to peaks, those corridors identify typical transactions, they are doing, essentially, a Huffman encoding, trying to find the typical sequence before it happens.

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