DSP stands for Digital Signal Processing. It's a way to manipulate and analyse signals (like sound or video) using digital processing techniques. Basically, it takes a signal (like a sound wave) and turns it into digital data that can be processed using algorithms and mathematical operations. DSP is used in a wide range of applications, including music and video production, telecommunications, and medical imaging. It can be used to remove noise from a recording, compress data to save storage space, or enhance the quality of a signal by filtering out unwanted frequencies. In simple terms, DSP is like using a computer to clean up and improve the quality of a signal. It's a powerful tool that allows us to do things with signals that would be impossible to do with analogue technology alone. In terms of trading, the market is opaque as a system and it's inputs and outputs are linked by a transfer response between the two. The system response of the market is broadly described as the combination of a high pass filter and low pass filter forming a wide pass band of spectral components.