Isaac Newton

1. Isaac Newton

Sir Isaac Newton (4 January 1643 [O.S. 25 December 1642] – 31 March 1727 [O.S. 20 March 1727]) was an English physicist, mathematician, astronomer, alchemist, theologian, and author (described in his time as a “natural philosopher”) who is widely recognised as one of the most influential scientists of all time and a key figure in the scientific revolution. His book *Philosophiæ Naturalis Principia Mathematica* (Mathematical Principles of Natural Philosophy), published in 1687, laid the foundations for classical mechanics, describing universal gravitation and the three laws of motion, and establishing him as a pivotal figure in the history of science. Newton’s work extended far beyond physics, impacting fields like optics, calculus, and theology.

Early Life and Education

Isaac Newton was born prematurely in the manor house of Woolsthorpe-by-Colsterworth, Lincolnshire, England. His father, also named Isaac Newton, had died three months before his birth. His mother, Hannah Ayscough, remarried when Newton was three years old to Barnabas Smith, a local rector, and left young Isaac in the care of his maternal grandmother. This early separation deeply affected Newton, contributing to a lifelong sense of insecurity and a complex emotional life.

Newton initially showed little promise as a student. He was withdrawn from school at the age of 14 to be put to work on his family's farm. However, his uncle, William Ayscough, recognised his academic potential and persuaded his mother to allow him to return to school to prepare for admission to the University of Cambridge.

He was admitted to Trinity College, Cambridge, in 1661. At Cambridge, Newton was initially drawn to the traditional Aristotelian philosophy that dominated scientific thought at the time. However, he was soon influenced by the newer ideas of thinkers like René Descartes, Galileo Galilei, and Johannes Kepler. He began a rigorous self-study program, delving into mathematics, optics, and astronomy.

The years 1665 and 1666, during which the University was closed due to the Great Plague of London, proved to be remarkably productive for Newton. He returned to Woolsthorpe and, in relative isolation, developed many of his most important ideas, including the law of universal gravitation, the beginnings of calculus, and his theories on optics. This period is often referred to as his *annus mirabilis* ("year of wonders").

Mathematical Contributions

Newton’s contributions to mathematics are profound and foundational. He is independently credited with developing calculus – although a dispute with Gottfried Wilhelm Leibniz over priority continued for many years. Newton developed what he called the "method of fluxions," which is essentially the same as differential calculus. He used this method to solve problems in physics, such as determining the velocity and acceleration of moving objects. He also developed the method of "inverse fluxions," which is equivalent to integral calculus, allowing him to calculate areas and volumes.

Beyond calculus, Newton made significant contributions to the study of series, interpolation, and the solution of equations. His work on binomial theorem and infinite series was crucial for the development of modern analysis. He also explored numerical methods for approximating the roots of equations, laying the groundwork for modern computational mathematics. His mathematical work wasn't published in a cohesive form for many years, contributing to the Leibniz controversy. Concepts like the Fibonacci sequence and its relation to the Golden Ratio, while not directly Newton’s discovery, would have been tools he could have utilized in his analysis of natural phenomena. The study of chaotic systems, explored much later, reveals underlying patterns Newton's work implicitly touched upon.

Laws of Motion and Universal Gravitation

Newton’s most famous achievement is undoubtedly his formulation of the laws of motion and the law of universal gravitation. These laws, presented in *Principia Mathematica*, revolutionized our understanding of the physical world.

• **First Law (Law of Inertia):** An object at rest stays at rest, and an object in motion stays in motion with the same speed and in the same direction unless acted upon by a force. This challenges the Aristotelian notion that a continuous force is required to maintain motion.
• **Second Law:** The acceleration of an object is directly proportional to the net force acting on the object, is in the same direction as the net force, and is inversely proportional to the mass of the object (F = ma). This law provides a quantitative relationship between force, mass, and acceleration. It's a cornerstone of momentum trading strategies.
• **Third Law:** For every action, there is an equal and opposite reaction. This law describes the interaction between objects.

The **Law of Universal Gravitation** states that every particle of matter in the universe attracts every other particle with a force that is proportional to the product of their masses and inversely proportional to the square of the distance between their centers. This law explained a wide range of phenomena, from the orbits of planets to the tides. Newton’s Law of Gravitation is a foundational element in understanding trend following systems.

These laws provided a unified framework for understanding the motion of objects on Earth and in the heavens, effectively dissolving the traditional distinction between terrestrial and celestial physics. Analyzing these laws through the lens of Elliott Wave Theory reveals recurring patterns in gravitational interactions. The application of Bollinger Bands can also help visualize the fluctuations in gravitational forces over time.

Optics and Light

Newton made groundbreaking contributions to the field of optics. He demonstrated that white light is composed of a spectrum of colors, which he famously showed by passing sunlight through a prism. This experiment disproved the prevailing belief that colors were modifications of white light. He also investigated the nature of light, proposing a corpuscular theory of light – the idea that light consists of tiny particles. While this theory was later superseded by the wave theory of light, it was a significant step in understanding the nature of light.

Newton designed and built the first practical reflecting telescope, which overcame the chromatic aberration (color distortion) that plagued refracting telescopes of the time. His work on optics led to advancements in candlestick patterns used to interpret light and color variations in financial charts. Understanding the dispersion of light is analogous to understanding the dispersion of price movements in volatility trading. He explored concepts related to the Fibonacci retracement in the distribution of colors within the spectrum.

Alchemy and Theology

While renowned for his scientific achievements, Newton also devoted a significant portion of his life to alchemy and theology. His alchemical writings, largely unpublished during his lifetime, reveal his attempts to transmute base metals into gold and to discover the "philosopher's stone." These pursuits were not seen as contradictory to his scientific work at the time; alchemy was considered a legitimate form of natural philosophy. His alchemical work demonstrates a search for underlying patterns and transformations, mirroring the search for patterns in technical indicators.

Newton was also a devout, though unorthodox, theologian. He developed his own unique interpretations of biblical prophecies, focusing on Daniel and Revelation. He believed that the Bible contained hidden mathematical and symbolic codes that revealed secrets about the universe and the future. He used his mathematical skills to analyze biblical texts, attempting to unlock their hidden meanings. This pursuit of hidden patterns aligns with the principles of harmonic trading.

Later Life and Legacy

In 1696, Newton was appointed Warden of the Royal Mint, and in 1699 he became Master of the Mint. He took his duties at the Mint very seriously, working to reform the English currency and suppress counterfeiting. He was knighted by Queen Anne in 1705.

Newton served as President of the Royal Society from 1703 until his death in 1727. He was buried in Westminster Abbey, a testament to his national importance.

Newton’s legacy is immense. His laws of motion and universal gravitation laid the foundation for classical physics and remained unchallenged for over two centuries. His contributions to mathematics, optics, and theology continue to be studied and appreciated today. He is considered one of the most brilliant and influential scientists in history, and his work continues to inspire scientists and thinkers around the world. His emphasis on empirical observation and mathematical rigor shaped the scientific method. The principles he established are still relevant in areas like risk management and position sizing. His work indirectly influenced the development of algorithmic trading through the emphasis on precise calculations and predictable systems. Concepts like Ichimoku Cloud and Parabolic SAR rely on mathematical principles he pioneered.

Newton's work also had a profound impact on the development of statistical arbitrage and high-frequency trading by providing the foundational mathematical tools necessary for analyzing and predicting market behavior. His understanding of forces and motion can be metaphorically applied to understanding market momentum and the forces driving price movements. His contributions to calculus are fundamental to many modern trading algorithms. The study of market microstructure builds upon the principles of observation and analysis that Newton championed. Even the development of correlation trading strategies relies on the mathematical frameworks he helped establish. The application of moving averages and relative strength index can be seen as attempts to identify trends and patterns in data, a core element of Newton's scientific approach. Similarly, MACD and stochastic oscillators are tools that build upon his understanding of rate of change and momentum. His influence extends to the complexities of options pricing models and futures contract analysis. The principles of value investing also resonate with Newton’s search for underlying fundamental truths.

References

• Westfall, Richard S. *Never at Rest: A Biography of Isaac Newton*. Cambridge University Press, 1980.
• Iliffe, Rob. *Newton: A Life*. Oxford University Press, 2007.
• Gleick, James. *Isaac Newton*. Vintage Books, 2003.
• Manuel, Frank E. *A Portrait of Isaac Newton*. Harvard University Press, 1968.
• Cohen, I. Bernard. *Introduction to Newton's Principia*. Harvard University Press, 1971.

Calculus Scientific Revolution Optics Gravity Mathematics Physics Alchemy Theology Royal Society University of Cambridge

Moving Average Convergence Divergence Relative Strength Index Bollinger Bands Fibonacci Retracement Elliott Wave Theory Ichimoku Cloud Parabolic SAR Candlestick Patterns Volume Weighted Average Price Average True Range Stochastic Oscillator MACD Market Profile Point and Figure Charting High-Frequency Trading Algorithmic Trading Statistical Arbitrage Risk Management Position Sizing Correlation Trading Options Pricing Models Futures Contract Analysis Value Investing Market Microstructure Trend Following Momentum Trading Volatility Trading

Start Trading Now

Sign up at IQ Option (Minimum deposit $10) Open an account at Pocket Option (Minimum deposit $5)

Join Our Community

Subscribe to our Telegram channel @strategybin to receive: ✓ Daily trading signals ✓ Exclusive strategy analysis ✓ Market trend alerts ✓ Educational materials for beginners