Natural logarithm and Trend: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
(Expand for bubbles, crashes and rational expectations.)
 
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''Options analysis''
Market conditions under which there is believed to be a greater probability that a subsequent price movement will be in the same direction as the previous period's price movement (rather than in the opposite direction).


The natural logarithm ln(x) is the logarithm to the base ‘e’, and mathematically the inverse function of the exponential function e<sup>x</sup>.
Extended trends lead to bubbles and crashes.
 
So for example ln(100) = 4.60517...
 
And e<sup>4.60517...</sup> = 100
 
 
Also known for short as the 'natural log'.
 
Also sometimes known - loosely - as the 'Napierian logarithm'.
 
(Not to be confused with Lognormal, which is different.)




== See also ==
== See also ==
* [[Exponential]]
* [[Adaptive expectations]]
* [[Exponential function]]
* [[Bubble]]
* [[Logarithm]]
* [[Correction]]
* [[Lognormal]]
* [[Crash]]
* [[Napierian logarithm]]
* [[Efficient market hypothsis]]
* [[Volatility]]
* [[Mean reversion]]
* [[Overshooting]]
* [[Random walk]]
* [[Rational expectations]]
* [[Trend analysis]]

Revision as of 09:09, 2 May 2018

Market conditions under which there is believed to be a greater probability that a subsequent price movement will be in the same direction as the previous period's price movement (rather than in the opposite direction).

Extended trends lead to bubbles and crashes.


See also