Zero-Centered Bins

While there is no reason to think 0 holds any special importance for the data set

y1, y2, ..., yN,

it may for the first differences

y2 - y1, y3 - y2, ..., yN - yN-1.

For instance, a positive first difference means the data values are increasing, a negative first difference means the data values are decreasing. This has clear significance for financial data.

Take B2 = 0, and in the absence of other information, take B1 and B3 symmetrically spaced about B2 = 0.

Usually express B1 and B3 as a fraction of the range of the differences.

Here is a time series generated by the logistic map, and the driven IFS produced using zero-centered bins.

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