As a test case for The Bubble Index Contour, I fed it a simple geometric Brownian trajectory. You can see from the contour graph that there are many signals produced. And they are all weak signals with the peaks never exceeding more than 60 in value. It is interesting to compare these results to previous examples: such as Tesla, Bitcoin, and The Bubbles of 1720. In these examples, The Bubble Index reaches much larger magnitudes (typically in the 1,000s) and there is a visually simple structure. The structures seen in Tesla, Bitcoin, and The Bubbles of 1720 have common features. On the other hand, the Geometric Brownian Contour has somewhat irregular patterns. My hunch is that asset prices generated by networks of human traders are far from random and in fact have much in common with Prigogine’s idea of time irreversibility through correlation formation in a network.

As a side note, the range of the geometric price path is 89 to 250.

Download The Bubble Index Contour: Geometric Brownian Trajectory