Omori's Law — earthquake aftershock math applied to market crashes

Omori's Law — earthquake aftershock math applied to market crashes

Applies geophysics' Omori's Law to financial markets. Post-crash volatility aftershocks decay at a predictable rate following power-law dynamics, not randomly. Shows March 2020 crash decay pattern. DM-bait for code repo.

• Post-crash vol decays by power law, not randomly • Same math as earthquake aftershock prediction • Can time post-crash mean reversion entries

(no tools tagged) Aftershock Modeling, Power Law Decay, Volatility Clustering

Earthquakes and Market Crashes have one weird mathematical thing in common... ​It’s called Omori’s Law. Originally used by geophysicists to predict the frequency of earthquake aftershocks, we can apply this directly to financial markets. ​👇 Comment "Omori" below and I’ll DM you the free code repo to calculate decay rates for yourself. ​When a major crash happens (like the March 2020 bottom shown here), the "aftershocks" of market volatility don't just disappear randomly. They decay at a highly predictable power-law rate ​(t⁻ᵖ). ​If you look at the log-log scale at the end of the video, the event rate for different volatility thresholds (|r| > 0.5%, 1.0%, etc.) stabilizes into a clear downward slope. ​The takeaway? Markets have a mathematical memory. Panic dissipates on a schedule. dee…