Signal Part 1

Caroline Mae

2 min read

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08-12-2024

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The term "signal" gets thrown around a lot. In finance, in technology, in everyday conversation. But what exactly is a signal, and why does it matter? This first part of a series will delve into the fundamental understanding of signals, laying the groundwork for more complex discussions in later installments.

What is a Signal?

At its core, a signal is simply information conveyed over time. This information can take many forms: a sound wave, a light pulse, a voltage change in a circuit, or even a price fluctuation in the stock market. The key element is the transmission of information, and that this information changes over time. It's not a static piece of data, but rather a dynamic process.

Think of it this way: a photograph is static data. A movie, on the other hand, is a signal – a continuous stream of images changing over time to convey a narrative. Similarly, the rhythmic beating of your heart is a biological signal, providing information about your health and well-being.

Types of Signals

Signals can be broadly categorized in several ways, including:

Analog vs. Digital

• Analog signals are continuous and vary smoothly over time. Think of the sound waves produced by a musical instrument or the voltage output of a microphone. They represent information through a continuous range of values.

• Digital signals are discrete and represented by a finite number of levels. Computer data, for example, is represented by a series of 0s and 1s – a digital signal. They offer advantages in terms of noise immunity and ease of storage and transmission.

Deterministic vs. Random

• Deterministic signals can be precisely predicted. For example, a sine wave generated by a function generator is a deterministic signal. You know its exact shape and behaviour.

• Random signals, also known as stochastic signals, are unpredictable. Stock market prices, noise in an electronic circuit, or the weather are all examples of random signals. Their future behaviour cannot be predicted with certainty.

Why Signals Matter

Understanding signals is crucial across numerous fields. In engineering, it's fundamental to communications, control systems, and signal processing. In finance, the analysis of market signals is vital for trading and investment decisions. Even in medicine, analyzing biological signals like ECGs and EEGs is essential for diagnosis and treatment.

This introduction provides a basic understanding of what a signal is and its different types. In the next part of this series, we will explore signal processing techniques and their applications in greater depth. Stay tuned!