Open Conference Systems, MISEIC 2019

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Development of Stochastic Oscillator Indicator Based Simple Pendulum Motion with the Euler Method for Against the Volatility of USD Non-Farm Payroll
Amri Baihaqi Mashuda

Last modified: 2019-10-13

Abstract


Trade is an activity that has existed before the existence of money. In the digital era, the trading system began to progress very rapidly. Especially in trading in a currency exchange system between countries which is usually called a Money Changer or Forex. Difference in Money Changer Direct selling of currencies, while Forex is buying and selling currencies with an online system. In recent years, enthusiasts from physicists have tried to understand the concepts of economic systems and physical methods that have been applied to financial time series studies. The phenomenon of fluctuations in the world economy is an interesting matter to be studied more deeply by tracing the causal factors of positive and negative sentiments due to Interest Rate Decision and Non-Farm Payroll. In this study tracing these fluctuations with market bomb prevention on NFP using the Stochastic Oscillator combined indicator, numerical oscillator with Euler method and momentum on USDX. Stochastic oscillators are mathematically explained as a suitable solution for ordinary differential equations. Some methods are suitable for stochastic oscillators one of them is the Euler method. The application of simple harmonic motion can be applied with a pendulum, where mass particles  are hung by a rope. When objects move in a deviant sense, we can get an angle with the strained force. We know that two forces apply to objects, namely the gravitational force and the tension force of the rope F0= - mg sin θ. The general solution for the above equation can be written as follows θi+1 = θi + ωi∆t. Based on analysis of NFP fundamental and technical data December 2018, February-March 2019, should sell about 15 minutes after opening. In January 2019 there was an anomaly in technical data, and fundamentally it was also not supportive to advise not to make transactions. NFP data in February 2019, should buy at 09.00 because based on the results of fundamental and technical analysis supports. In March 2019, should buy at 11.00.

Keywords


Euler Method; Momentum Indicator; NFP; Stochastic Oscillator.