noun, verb, noised, nois⋅ing.| 1. | sound, esp. of a loud, harsh, or confused kind: deafening noises. |
| 2. | a sound of any kind: to hear a noise at the door. |
| 3. | loud shouting, outcry, or clamor. |
| 4. | a nonharmonious or discordant group of sounds. |
| 5. | an electric disturbance in a communications system that interferes with or prevents reception of a signal or of information, as the buzz on a telephone or snow on a television screen. |
| 6. | Informal. extraneous, irrelevant, or meaningless facts, information, statistics, etc.: The noise in the report obscured its useful information. |
| 7. | Obsolete. rumor or gossip, esp. slander. |
| 8. | to spread, as a report or rumor; disseminate (usually fol. by about or abroad): A new scandal is being noised about. |
| 9. | to talk much or publicly. |
| 10. | to make a noise, outcry, or clamor. |
| 11. | make noises, Informal. to speak vaguely; hint: He is making noises to the press about running for public office. |
noise
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Noise
Price and volume fluctuations in the market that can confuse one's interpretation of market direction. Used in the context of equities, it is stock market activity caused by program trading, dividend payments or other phenomena that is not reflective of overall market sentiment. Also known as "market noise".
Investopedia Commentary
In general, the shorter the time frame, the more difficult it is to separate the meaningful market movements from the noise. Noise traders attempt to take advantage of market noise by entering buy and sell transactions without the use of fundamental data.
Related Links
Introduction To Technical Analysis
Introduction to Types of Trading: Technical Traders
Trading Psychology And Technical Indicators
See also: Bear, Bull, Fundamental Analysis, Noise Trader, Noise Trader Risk, Program Trading, Technical Analysis
Also spelled: Market Noise
noise
noise communications
Any part of a signal that is not the true or original signal but is introduced by the communication mechanism.
A common example would be an electrical signal travelling down a wire to which noise is added by inductive and capacitive coupling with other nearby signals (this kind of noise is known as "crosstalk").
A less obvious form of noise is quantisation noise, such as the error between the true colour of a point in a scene in the real world and its representation as a pixel in a digital image.
(2003-07-05)