Another type of log-periodic oscillations on Polish stock market

Log-periodic oscillations have been used to predict price trends and crashes on financial markets. So far two types of log-periodic oscillations have been associated with the real markets. The first type oscillations accompany a rising market and end in a crash. The second type oscillations, called "anti-bubbles" appear after a crash, when the prices decrease. Here, we propose the third type of log-periodic oscillations, where an exogenous crash initiates a log-periodic behavior of the market, and the market is bullish. The critical time is at the beginning of the oscillations. Such behavior has been identified on Polish stock market index WIG between the "Russian crisis" (August 1998) and the "New Economy crash" in April 2000. (C) 2004 Elsevier B.V. All rights reserved.