Applications of the Fourier Transform as a Financial Indicator for Cyclical Asset Prices

This paper explores how mathematical tools used to study sound and signals can also reveal patterns in financial markets. By applying the Fourier Transform, a method that breaks down complex data into repeating cycles, the study identifies rhythmic trends in stock prices and builds a trading indicator based on them. Using historical market data, the strategy is tested for accuracy and risk-adjusted returns, showing strong performance across major stocks and indexes. The work highlights how mathematical analysis can deepen our understanding of financial behavior and guide data-driven investment decisions.

Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2025-10-08
DOI
https://doi.org/10.5281/zenodo.17292650
Primary Topic
Electric and Hybrid Vehicle Technologies
Type
article
Field-Weighted Citation Impact
0.00
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article

Applications of the Fourier Transform as a Financial Indicator for Cyclical Asset Prices

Zenodo (CERN European Organization for Nuclear Research)
Electric and Hybrid Vehicle Technologies
article

Applications of the Fourier Transform as a Financial Indicator for Cyclical Asset Prices

article en

Abstract

This paper explores how mathematical tools used to study sound and signals can also reveal patterns in financial markets. By applying the Fourier Transform, a method that breaks down complex data into repeating cycles, the study identifies rhythmic trends in stock prices and builds a trading indicator based on them. Using historical market data, the strategy is tested for accuracy and risk-adjusted returns, showing strong performance across major stocks and indexes. The work highlights how mathematical analysis can deepen our understanding of financial behavior and guide data-driven investment decisions.

Zenodo (CERN European Organization for Nuclear Research)
Openalex Percentile: Top 51%
Electric and Hybrid Vehicle Technologies
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Applications of the Fourier Transform as a Financial Indicator for Cyclical Asset Prices · Zenodo (CERN European Organization for Nuclear Research) (2025) | TGRS Research Map | TGRS