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> I guess my question was what are you doing exactly when detrending data?
Yup. I like the Brickey method for detrending long-term historical stock
market data. If you look at a 50 or 100 year chart with a linear scale,
the curve is obviously exponential. Plot a semi-log chart and it's a
pretty straight line. So you have to work with logs. Here's what I do in
Excel (more or less)....
take the ln of the price
find the average ln move = (last ln - first ln)/rows
subtract (average ln move)*(row number) from each ln price
take the exp of the above numbers
Obviously, this method is only good for historical research. If you need
something you can run realtime, you will have to use another method.
--
Dennis
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