Fractal nature of stock market...

A trend is a trend
indeed truly your friend
no matter the time involved

One man's counter trend trade is another man's consolidation for that matter...

All these statistics guys, eventually they are going to use some DSP thingy to identify the noise and subtract it out and then they will see the nature of the trend.. on whatever fractal level they focus on of course...
 
Quote from Mav88:

yes, quite true. The hurst exponent but be exactly 1/2 in order for the fractal description to imply randomness. Many times it is not.


In any event it is easy to see that the pure fractal model breaks down for markets. Just open up a tick chart and you can see that scale invariance is not held.
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+1
 
Quote from Mav88:

also, you guys feel free to post anything as to how supernatural forces affect the stock market
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The Fushigi magic gravity ball will read everyone's minds and predict the future!!

:D
 
Quote from maxpi:

One guy's narrow range inside bar is another guy's Bollinger narrowing and could be another guys doji...

One guy's trend reversal is another guy's continuation...

One guy's stop placement is another guy's bread and butter...

One guy's noise is another's volatility...
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well said!
 
fractals have the same pattern when looked at at any magnification. i don't believe the same holds true for financial markets. a line on a stock for a 1 day period doesn't look the same as a line on a stock for a 5 year period.

however i do agree that the markets do have a degree of irrationality in them no different then the people who make up the markets.
 
Quote from Arthur Deco:

It is terminally fucking stupid to describe the markets as "fractal", implying that they are random.
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Ironically, the properties of fractal behavior imply quite the opposite.

As to anyone interested in fractal education (not the maligned TA version), what better source than reading literature from the original source himself, b. mandelbrot.

There are several easily accessible layman's books authored by mandelbrot; go pick them up and spend some time reading them.
 
Quote from dtrader98:

Ironically, the properties of fractal behavior imply quite the opposite.

As to anyone interested in fractal education (not the maligned TA version), what better source than reading literature from the original source himself, b. mandelbrot.

There are several easily accessible layman's books authored by mandelbrot; go pick them up and spend some time reading them.
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thank u. reading is fundamental.
 
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