Engineering Alpha

Engineering Alpha

Understanding Wavelet Transforms

Discussing Wavelet Transform for Time Series Analysis

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Feb 26, 2026
∙ Paid

If you work with time series long enough, you eventually run into a basic problem: most tools either tell you what frequencies exist or when things happened, but not both in a clean way.

The classical Fourier transform is a perfect example. It decomposes a signal into sine waves and tells you the frequency content. That’s powerful, but it assumes the sig…

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