Flash Crashes and Asymptotic Behavior

 Flash Crashes and Asymptotic Behavior

               At the very beginning of our "economics" project we were introduced to the idea of Flash Crashes and the possibility of relating them to the asymptotic behavior we had been studying. While doing some button pushing and input from Brian and Julian and the knowledge of Quadratic and Asymptotic behavior, I think I developed a primitive parent curve for a Flash Crash scenario. The equation for which could be plugged into your calculator as

^-1⁄_√x2

^{This will leave you with a graph of the fall and pick up of the crash. The only problem being that it is in third and fourth quadrant. to fix this put your x2 in parenthesis and add a number to it to give the function a vertical shift. The product of witch will leave the asymptote along the y axis. To move the asymptote over just add to the x value.} 

                 Now we wish to apply this to an actual Flash crash. Mr. Fedirko pointed me to Matt's post with the graphs. For the blog I thought it would be cool to take the crash given in Matt's and find its difference from a parent curve and also fit the model to the crashing part of the graph. Then finally debate a way to alter the second half of the graph.