27–31 May 2024
OAU Campus, Ile-Ife, Nigeria
Africa/Lagos timezone

Schrodinger Equation for Momentum Indicator in the Stock Market

28 May 2024, 15:30
10m
AFRIGIST, Main - Conference Hall (OAU Campus, Ile-Ife, Nigeria)

AFRIGIST, Main - Conference Hall

OAU Campus, Ile-Ife, Nigeria

Road 1, O.A.U Campus
250
Applied mathematics Technical session 3

Speaker

Dr Emmanuel Ohwadua (Bingham University, Karu, Nasarawa State.)

Description

ABSTRACT

This paper is a contribution to the application of quantum finance theory. Some of the common momentum indicators include: the rate of change (or the ROC), the relative strength index (or the RSI), the moving average convergence divergence (or the MACD) and the stochastic indicator. It is noted that many of the known methods for computing the indicators including those not mentioned here, have mainly concentrated
on the historical stock’s data spanning over weeks and months, and even at that, there is no empirical basis for most of those methods as they were mere mathematical manipulations and conjecture. Using the model based on the Schrodinger equation for the harmonic oscillator, we developed a method to compute the velocity and momentum of stock prices in a stock market. This offered a proven approach that would give financial technical analysts credible computational method using daily/current stock market data that would improve their quality of advice to potential investors and interested stakeholders. Some randomly selected equities traded on the floor of the Nigeria Stock Exchange were used as our case study.

Keywords – Schrodinger equation, quantum finance, velocity indicator, momentum indicator, technical analyst.

Primary author

Dr Emmanuel Ohwadua (Bingham University, Karu, Nasarawa State.)

Presentation materials

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