Quote from equitydaytrader:
i like the charts. they definitely seem to mimic each other at certain points.
it's interesting. i'm glad you brought this up.
if this is true then there should be a lot of almost perfect coorelations between 2010 indices and lets just say the same indices in 2002.
right??
it would take a lot of research or custom software to find those coorelations going back at least 20 years.
and i guess the idea is that these patterns would repeat themselves at the same intervals as well. right??
basically predicting the future movements of an index based on historical observations. hmmmm
Sounds a great idea, but if you want to save yourself a lotta time... forget it.
It will work up to a point and just when it seems like you have discovered the secret of the market, chaos strikes and it becomes as random as it was perfect.
Like a GPS system the market requires 4 dimensions to locate anything - longs, lats, height above sea lev and time. Time is the bummer. If the satellite was set to earth time your position would be 7 miles off increasing every day because time up there is not the same as time here.
I came to the conclusion that time and space time was the market problem and any linear projection would always be guaranteed to fall over soon after it was looking perfect.
So if you take your 4 dimensions of Time, Price, Volume and Space Time you will find that it's not chaos at all. The fractals jump about between combinations of these.
Clue: When you use a Volume chart, your trend line occupies time but not at a fixed duration per bar, yet time is involved. Your time chart uses a fixed time element per bar and is linear rather than space time.
The time element is elastic and is the glue that pulls the 4 dimensions together so you can see the fractals jump and it is predictable.
Now I have just saved you about 5 years investigation, euphoria and dismay, and given you the key that you probably would never have found.
The rest is up to your creativity and sweat.