Do you believe in the fractal nature of the stock market?
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I am serious, and my post was done for a specific reason that relates to the question I was asked!
What does the following article tell you about people!
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What does the following article tell you about people!
http://www.ancientegyptonline.co.uk/denderahlightbulb.html
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Just look at the S&P cash chart for all of 2015...we had some 5-6 pt range bars when VIX was down around 12...then came Aug 19th...
Of course there are similarities across time frames BUT:
I doubt that many here have any precise idea what a fractal actually is, beyond the vague intuitive statement of the OP. Can any of the proponents of the fractal nature of price charts determine the fractal dimension of the S&P500 price history? In order to convince me of what you claim you need to supply a more scientific argument.
Any similarity of price chart time frames to fractals seems to be entirely in your own minds due to your own biased thinking and susceptibility to accept unproven ideas. Much like the way some people believe that ancient Egyptions used electric light bulbs.
This is what a real fractal looks like, the depth is infinite with the same patterns recurring unlike on a price chart.
http://www.jakebakermaths.org.uk/maths/mandelbrot/canvasmandelbrotv12.html
I'm sure you guys heard of Elliott Wave Theory.
" ...
Elliott's theory is somewhat based on the Dow theory in that stock prices move in waves. Because of the "fractal" nature of markets, however, Elliott was able to break down and analyze them in much greater detail. Fractals are mathematical structures, which on an ever-smaller scale infinitely repeat themselves. Elliott discovered stock-trading patterns were structured in the same way.
Market Predictions Based on Wave Patterns
Elliott made detailed stock market predictions based on unique characteristics he discovered in the wave patterns. An impulsive wave, which goes with the main trend, always shows five waves in its pattern. On a smaller scale, within each of the impulsive waves, five waves can again be found. In this smaller pattern, the same pattern repeats itself ad infinitum. These ever-smaller patterns are labeled as different wave degrees in the Elliott Wave Principle. Only much later were fractals recognized by scientists.
..."
Elliott's theory is somewhat based on the Dow theory in that stock prices move in waves. Because of the "fractal" nature of markets, however, Elliott was able to break down and analyze them in much greater detail. Fractals are mathematical structures, which on an ever-smaller scale infinitely repeat themselves. Elliott discovered stock-trading patterns were structured in the same way.
Market Predictions Based on Wave Patterns
Elliott made detailed stock market predictions based on unique characteristics he discovered in the wave patterns. An impulsive wave, which goes with the main trend, always shows five waves in its pattern. On a smaller scale, within each of the impulsive waves, five waves can again be found. In this smaller pattern, the same pattern repeats itself ad infinitum. These ever-smaller patterns are labeled as different wave degrees in the Elliott Wave Principle. Only much later were fractals recognized by scientists.
..."