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

Discussion in 'Trading' started by smile, Oct 23, 2015.

  1. Redneck

    Redneck

    You omitted and supplanted uncertainty - for random - they are not the same

    Each tick...., the mkt..., PA...., each trade's outcome - is uncertain

    However..., over time - an approach / methodology..., applied consistently..., with discipline and patience..., creating a repeatable routine

    Results in consistent profitability

    =============================

    Only thing random about trading..., is the trader (specifically their action's) - and unless he / she mitigates the behavior(s) creating those random actions - that's what (all) ya got

    A random variable..., trying to operate in an uncertain environment

    Traders who view the mkt / PA / trading as random - are peering into a mirror


    RN
     
    #11     Oct 23, 2015
    dartmus likes this.
  2. Visaria

    Visaria

    Yes,i tend to agree with this. You would expect it. In intraday time frames, you have algos and hfts operating that do not operate in daily, weekly timeframes.
     
    #12     Oct 23, 2015
  3. Turveyd

    Turveyd

    Errrr NO!!!

    Stop using big words you don't fully understand " Fractal "
     
    #13     Oct 23, 2015
  4. Turveyd

    Turveyd

    You don't get momentum, which carries the price over 20weeks strongly either, or even 20days.

    But 20mins yes!
     
    #14     Oct 23, 2015
  5. J_Smith

    J_Smith

    You have it sorta right, but going the wrong way about it!

    Think of a chart as nothing but people acting and reacting to what they think might happen next based on what they think they know about what has already happened !

    If you truly believe that just by "spotting" patterns is going to make you rich, then I am sorry to tell you that you have acquired the wrong information, from whatever source/s!

    Price movement across the different timeframes is complicated, as you are looking at lots of different people acting and reacting, each with different goals and objectives - so when price moves in one timeframe it can have a lot more significance than in another timeframe - i.e - a pattern in one timeframe has a different meaning in another timeframe, so they can not be looked at in the same context!

    J_S

    Screen Shot 10-23-15 at 07.12 PM.PNG Screen Shot 10-23-15 at 07.17 PM.PNG
     
    #15     Oct 23, 2015
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  6. dartmus

    dartmus

    Smaller intervals by their nature contain more randomness interspersed between non-randomness. But the same persistent non-randomness that forms the larger intervals also forms the non-randomness found within smaller intervals.
     
    #16     Oct 23, 2015
  7. dartmus

    dartmus

    Regarding only trading with the higher timeframe trend. What do you mean where your picture says... Trades with the HTF trend do tend to work better, but trends do end, so it's necessary to read trend structure?

    How can I read the trend structure?
     
    #17     Oct 23, 2015
  8. baro-san

    baro-san

    One's orderly structure is another's randomness :)

    Here there are a bunch of charts, annotated by different traders, that show the same tradeable pattern (all 5 min ES).


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    #18     Oct 23, 2015
    dartmus likes this.
  9. The market is definitely not fractal. A very strong downtrend on a 1 min chart that looks like a crash might actually only show up as a blip (minor reaction) on a weekly chart. One has absolutely nothing to do with the other.
     
    #19     Oct 24, 2015
  10. I've noticed when you look at a daily chart over 6 months, there tends to be up days interspersed with down days.
     
    #20     Oct 24, 2015