**Part 1. One Hundred Years of the All Ords Re-Indexed To Pi^(N/2)**

**What This Chart is Telling Us.**

**1. Is that every major market boom high since the great depression is equal to Pi^N times the first high after the great ****depression.**

**2.They are in a precise geometric sequence of 74.5 * 3.141^N since March 1937 ****Proof Here Data Here**

**3. This is the last thing you would expect a random walk system to do, ****it is however the first thing you would expect from a wave function.**

**4. Therefore we should be looking at the data in polar form.**

**5. Instead of Cartesian co-ordinates which ****distorts the charts in the same way a Mercator projection stretches and compresses the sizes of the continents. **

**6. Financial markets are not a random walk system they are telecommunications networks.**

**7. Prices are**** information transmitted electronically, t****herefore they obey the same laws of wave physics as electromagnetic energy ie: Photons and Electrons.**

**8. Money is light mathematically they are the same thing.**

**9. The only way to find a pure solution to this problem is therefore in terms of a three dimensional wave function on the complex plane.**

**10****. That returns a well defined scientifically reliable signal ****in real time.**

**ASX200 Weekly With Signal Processing.**

**Part 2. Black and Scholes Blunder.**

**US500 With Parabolic Distribution.**

**1. Why Black does Scholes keep blowing up banks and brokers.**

**2. Because they made an assumption and did not test it.**

**3. Well not until LTCM was leveraged out to the Twilight Zone at 33:1.**

**4. Financial trends are not normally distributed, t****hey are parabolically distributed.**

**5. Which is why so many pricing formulas fail.**

**6. Because they are based on the wrong distribution curve.**

**More: Markets as Wave Functions.**

**Part 3. Directional Volatility Index.**

**More: Directional Vix Daily Charts.**

__Directional Volatility Calculations.__

**1.When we calculate a regression we take the square root of the square of a number.**

**2. We do this to remove and thereby throw away the directional component of the distance from our regression line to the value.**

**3. I stress throw away in mathematics this is never a good idea, w****e are throwing away the value we need to do any directional analysis.**

4.** If you handle this as a complex number and do your calculations accordingly and then return to the Cartesian plane.**

**5. An entirely new set of values emerges t****hat can be used to develop a ****steady state process control solution.**

**6. With a delta of one regardless of the direction of the major trend****.**

**7. The signal trace of a human voice is indistinguishable from a market, after all they**** are really just conversations about prices.**

**Human Voice Sample.**

**SP500 Daily**

**More: US500 Daily Charts.**

**UKOUSD Weekly**

**US Dollar Weekly**

**XAUUSD Weekly**

**XAGUSD Weekly**

__Part 4. Summary Points.__

**1.The definition of a working scientific theory is the ability to predict and explain future observations.**

**2.There is a fatal error in the way we think about markets and money, i****t is not a random walk or a Brownian motion system.**

**3. It is information transmitted across a telecommunications network, t****herefore it obeys the same laws of physics as electromagnetic energy.**

**4. Money is light they are the same thing, ****which is seen as Moiré type interference patterns in normal charts.**

**5. Markets are not continuous, they are instantaneous and a****ll prices are artifacts of something that has happened. **

**6. Money has no real world size or physical dimensions, t****his puts it into the domain of quantum probability.**

**7. The mathematics of finance and physics are mutually inclusive, e****verything is subject to the laws of mathematics.**

**8.To discover the exact relationship between finance and physics is just a matter of asking the right question.**

**9. The right answer can be found here Laplace Compound Interest.**

**Additional Reading: FinancialInterferometry.com**