I'm surrounded by idiots... This is what I was referring to by the fractal nature of the stock market: http://i41.photobucket.com/albums/e267/kd6dxa/FDG_FRACTAL_POINT_SET.jpg But... This is only one type of fractal. Anyone have any educational resources other than time-scale fractals, feel free to post them in this thread.
This is more of what I was referring to in the topic of this thread: Say you have a wedge, or pennant, that becomes the main branch... The question is, what are the different subsets of this pennant... Hence the fractal nature of the stock market...
Here... This is also what I sort of mean... You'll notice how the second and third graphs (left chart) both start out looking the same, but b/c they are not of the same fractal harmonics, the outcomes are different...
It is nice to know that you reign above the other denizens of Elite Trader. Perhaps there would be less idiots around you, if you took out all the mirrors in your residence. *add this one to the ignore list *
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
i havent read the book but i'm somewhat familiar with the concepts. chaos is a relative term and when viewed from a different perspective or angle what may seem chaotic to 1 person may be a simple pattern to someone else randomness, like mysticism usually explains things that we dont understand and just like the seasons, 1 day we will understand those things that we now call random
Try this . . . the elements that make up a chaotic event, when arranged disregarding balance, remain chaotic. Those same elements naturally and sequentially arranged, eliminating the variable aspects that make them chaotic, produce balance & order. Order from chaos on a chart is achieved by elimminating the variables.
If you leave the price axis alone, it is easy for an experience trader to determine the timeframe. That charts of different timeframes without time and price look the same is a straw man proposition. It is volume that makes the difference in trading. Volume determines demand and supply and eventually price. Add volume to a chart and any experience trader will know the timeframe.
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.