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Peter:
The theory behind the FFT (Fast Fourier Transform) is well developed - it's
used in engineering applications to transform one variable (say, current
flow) from one domain to nother (say, frequency) for analysis.
As far as TA goes, I've used it a bit, with mixed results. One suggestion
that I heard (through this forum) was to check this against the results of a
specific trading system to validate it. For example, if your system has an
average hold period close to 1/2 of a predominate cycle in the FFT, you have
pretty good assurance that the cycle is REALLY there.
Hope that this helps.
Good luck, Mark
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