A seasonal model needs a way to describe a repeating pattern. Sine and cosine provide that language. This lesson teaches radians, the unit circle and periodic functions through a simple liquidity example. These are also prerequisites for trigonometric derivatives. You do not need to treat a seasonal pattern as a trading signal to understand the mathematics.
Learning objectives. By the end of this note you should be able to:
- convert between degrees and radians;
- define sine and cosine using the unit circle;
- evaluate the principal special angles;
- use periodicity and the identity ;
- describe amplitude, period and phase in a sinusoidal model.
In this lesson
- Radians measure arc length
- Sine and cosine on the unit circle
- Periodic models
- Identities you should own
- Reading the liquidity cycle
Before you start
The full lesson, with worked examples and exercise solutions, is for members.
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