I have wondered whether
listening to the frequency of prices may somehow provide
signals in trading the market. Some scientific evidence
indicates that approximately 90% of a person's sensory
input comes from seeing. Most people rely more strongly
on visual, as opposed to auditory or other types of
sensory stimuli. However, there are some people, such as
musicians or the blind, who may rely on auditory stimuli
much more than visual stimuli. Certain music has rhythms
and patterns which some people are more attuned to than
others. Listening to music is quite a different
experience, and generally more enjoyable than reading
the sheet music. Could the same be said for a trader
trying to
hear
the patterns of sound
rather than see them?
All of the published
research in market patterns has been on the visual
level. But is it possible that certain people might
better understand the market patterns by listening to
them? Is it possible that certain patterns are more
easily identified in an audible, rather than a visual
way?
The work to set market
prices to sound began as a practical attempt to allow a
blind cousin, interested in trading, to hear the
markets. This idea might allow him to study past market
data by listening to it. A computer program was written
to set each different price level to a specific sound
frequency. For example, the German mark at the 0.5000 level
would be set to a frequency of 1000 hertz, and the next
tick up, or 0.5001, would be set to the 1001 hertz
level. For those who disbelieve, keep in mind the same
thing is done for visual market data, but the
frequencies are at the visual level versus the auditory
level.
The
results are still being reviewed, but some of the work
holds promise. The problem with this kind of work is
that I do not know how to offer any kind of observable
results. We are still in the testing stage and have not
done any real time trading with the patterns. Any rhythm
or pattern discerned by one person would, of course, be
highly subjective and therefore learning the pattern may
not necessarily be duplicated by another individual. We
did not hear anything approaching the music of Bach,
Beethoven, or Copland, but wonder if some of the more
modem composers may have derived some of their
inspiration from listening to the sounds of the market.