Do you believe in the fractal nature of the stock market?

[smile]

"A fractal is a never-ending pattern. Fractals are infinitely complex patterns that are self-similar across different scales. They are created by repeating a simple process over and over in an ongoing feedback loop."

"Fractal patterns are extremely familiar, since nature is full of fractals. For instance: trees, rivers, coastlines, mountains, clouds, seashells, hurricanes, etc"

I believe in the fractal nature of the stock market.

It's important because it means the same patterns exist over all time patterns.

Once you learn some patterns, you can find them in all time frames.
So you can choose what time frame is the lowest risk for you.

 

[Scataphagos]

I believe in the fractal nature of the stock market.

There are "patterns and correlations" to market behavior, but I don't know they are of the "repetitive,mathematical/fractal" nature you're suggesting. I would not bet/risk $$/capital upon that notion.

 

[gkishot]

"A fractal is a never-ending pattern. Fractals are infinitely complex patterns that are self-similar across different scales. They are created by repeating a simple process over and over in an ongoing feedback loop."

"Fractal patterns are extremely familiar, since nature is full of fractals. For instance: trees, rivers, coastlines, mountains, clouds, seashells, hurricanes, etc"

I believe in the fractal nature of the stock market.

It's important because it means the same patterns exist over all time patterns.

Once you learn some patterns, you can find them in all time frames.
So you can choose what time frame is the lowest risk for you.

Market has no regular patterns.

 

[syswizard]

Market has no regular patterns.

And of course, you've proven this, right ?

 

[Redneck]

And of course, you've proven this, right ?

Every moment in the mkt is unique


RN

 

[dartmus]

Every moment in the mkt is unique


RN

Every moment has similarities to previous moments.

 

[Redneck]

Every moment has similarities to previous moments.

Which is exactly what keeps the mkt/ price movement from being random


RN

 

[zbestoch]

Every moment in the mkt is unique

Every moment has similarities to previous moments.

Which is exactly what keeps the mkt/ price movement from being random

Now that's what I call teamwork!

As I understand the term, for the market to be fractal, i.e. self-similar at every degree, a pattern manifest on a five minute time series, say, for example, a high-higher high-lower high, aka "head and shoulders," would be likewise manifesting itself at every subsequently higher degree time series, e.g. hourly, daily, weekly, as well as each lower degree time series, e.g. 2 minute, 1 minute, single tick. This is easily shown not to be the case, as many are the times I see an intraday head and shoulders which is merely part of a consolidation as the market then charges higher. However, the conceptual framework that defines the pattern does manifest itself over varying degrees of time series at different times.

But I like the way Redneck and dratsum said better:

Each moment in the market is unique. But every moment has similarities to previous moments, which indicates that price movement, while random from beat to beat, is not completely random over time.

 

[syswizard]

Look, if there were not patterns in the market, people like

Every moment has similarities to previous moments.

Exactly...which is why guys like Steven Schonfeld and Michael Botlo have studied price action for years and now have a distinct edge with their trading algorithms.
Dummies like us can't figure it out.....it all "looks" to be random.
But if you have a proven system, you can be consistently profitable.

 

[Mysteron]

"A fractal is a never-ending pattern. Fractals are infinitely complex patterns that are self-similar across different scales. They are created by repeating a simple process over and over in an ongoing feedback loop."

"Fractal patterns are extremely familiar, since nature is full of fractals. For instance: trees, rivers, coastlines, mountains, clouds, seashells, hurricanes, etc"

I believe in the fractal nature of the stock market.

It's important because it means the same patterns exist over all time patterns.

Once you learn some patterns, you can find them in all time frames.
So you can choose what time frame is the lowest risk for you.

Rubbish.

In intraday stock chart usually shows periods of intense activity and periods of low activity that are not matched in the same way by charts on higher time scales - daily, weekly etc.