Inside Collection (Technical report): Wavelet Analysis of Crude Oil Futures
The Discrete Wavelet Transform allows us to see Approximations and Differences of s signal. Using the dwt function in Matlab allows us to see the approximation of a signal which is the signal after some of the noise is taken out. The noise is represented by the difference. The discrete wavelet transform allows us to take out the noise of a signal while still retaining the integrity of the signal. The following figure shows us the level three approximation of a signal with the noises taken out.
| Approximations and Differences |
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