Posts Tagged ‘fractals’

Mystifying and Naturally Psychedelic Fractal Zoom

Fractals in motion. Elliott Wave theorists relate these mathematically inspired patterns to the ups and downs of the stock market. – Ilene 

Mystifying and Naturally Psychedelic Fractal Zoom

Via Dr. Mercola 

 

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How does this relate to Elliott Wave Theory?

Learn Basics of Elliott Wave Analysis — FREE 

By Elliott Wave International

Ralph Nelson Elliott discovered the Wave Principle in the 1930s. Over the decades, his discovery was kept alive by a handful of individuals. A few of those, such as Bolton, Prechter and Frost, educated investors on how to use pattern analysis in financial markets.

To help out Elliott Wave International’s readers in learning the basics of the method, we put together a free 10-lesson online tutorial. Here’s an excerpt.

EWI’s Basic Elliott Wave Tutorial
Lesson 1, excerpt

At that time [of his discovery], with the Dow in the 100s, R. N. Elliott predicted a great bull market for the next several decades that would exceed all expectations at a time when most investors felt it impossible that the Dow could even better its 1929 peak. As we shall see, phenomenal stock market forecasts, some of pinpoint accuracy years in advance, have accompanied the history of the application of the Elliott Wave approach.

Under the Wave Principle, every market decision is both produced by meaningful information and produces meaningful information. Each transaction, while at once an effect, enters the fabric of the market and, by communicating transactional data to investors, joins the chain of causes of others’ behavior. This feedback loop is governed by man’s social nature, and since he has such a nature, the process generates forms. As the forms are repetitive, they have predictive value.

The market…is not propelled by the linear causality to which one becomes accustomed in the everyday experiences of life. Nor is the market the cyclically rhythmic machine that some declare it to be. Nevertheless, its movement reflects a structured formal progression. In markets, progress ultimately takes the form of five waves of a specific structure.

Three of these waves, which are labeled 1, 3 and 5, actually effect the directional movement. They are separated by two countertrend interruptions, which are labeled 2 and 4, as shown in Figure 1-1. The two interruptions are apparently a requisite for overall directional movement to occur.

At any time, the market may be identified as being somewhere in…
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Fractals!!

Elliott Wave theory, introduced in 1933 by R.N. Elliott, is based on Fibonacci numbers and used to describe market trends. Robert Prechter’s socionomic theory, an ambitious "theory of everything," is based on Elliott Wave theory, Fibonacci numbers and fractals (patterns in nature). It can be applied to patterns seen in stock market charts. It can also be applied to social mood, length of women’s skirts, measures civil unrest such as crime and war, and more (not necessarily accurately, that’s another matter.)

The theory holds that variables such as market indexes, skirt hem lines, and civil unrest, are dictated by the numerical series influencing collective social mood. How? That answer requires a bit of mystic-thinking. While Elliott Wave counts are useful for traders, counting the waves is subjective and easier in retrospect. Consequently, there can be many predictions flowing from the same charts. Using Elliott Waves for trading purposes requires learning how to interpret the charts and applying the information for trading purposes. Ilene

Fractals!!

Courtesy of Michael at EW trends and Charts

The structures Elliott described also meet the common definition of a fractal (self-similar patterns appearing at every degree of trend). Elliott wave practitioners say that just as naturally-occurring fractals often expand and grow more complex over time, the model shows that collective human psychology develops in natural patterns, via buying and selling decisions reflected in market prices"

 

fractals (Click here to see the fractal in motion, by BafS, Ultra Fractal, image and license at Wikipedia)

I wanted to spend the week-end exploring more about a fractal that has developed in the last few months. Parts of it have already been discussed on the blogs, but I have expanded the fractal from the original wave to include the waves preceding it. And to see if it is possible to see into the future a bit, to maybe foresee the coming wave structure and the size of it. Of course this is only a hypothetical situation, and I will not trade off of it, but will keep it on my radar. You never know what nature is capable of until you sit back and watch the power of it!!

This is the big picture, the SPX all the way back to the end of 2008, from the start of the sell-off and one of the largest corrective waves in history. There is


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Cyclical Growth, Form and Fibonacci

Here’s a terrific article by Tim at The Psy-Fi Blog about Fibonacci numbers and Elliott Wave Theory.

Brief Intro:  Elliott Wave Theory, introduced in 1933 by R.N. Elliott, is based on Fibonacci numbers and is used to describe market trends.  Robert Prechter’s socionomic theory is an ambitious "theory of everything" based on Fibonacci numbers and fractals (patterns in nature), and extending to the ups and downs of markets, social mood, length of women’s skirts, measures civil unrest such as crime and war, etc. The theory is that all are related, dictated by the numerical series. How, is never answered unless you go mystic. While Elliott Wave counts appear useful for traders, the reason may be that many others use these numbers and patterns for determining buy and sell points. Also, the general notion that markets go up and down in waves, reflecting our collective psychology, makes sense without the grander notions of an all encompassing theory. – Ilene

Cyclical Growth, Form and Fibonacci

Courtesy of Tim at The Psy-Fi Blog

Ancient Ideas, Modern Setting

As an up-to-date in-your face sort of blog we like to make sure our readers are well informed about the financial world as we see it. So, starting back in Ancient India in 200BC and taking in medieval Italy and some early twentieth century anti-Darwinian evolutionary thinking let’s take a look at plant growth and snail shells, how twentieth century humanity’s inclination to see the Man in the Moon translates into modern financial theory and why physics may simply be wishful thinking.

At the root of this journey is a simple mathematical progression named after a man who never discovered it and was more concerned with accountancy than trading. Still, he’s still remembered a millennium after his death, which is more than most of us can ever aspire to.

The Golden Ratio

In 1202 the Italian mathematician Leonardo of Pisa, aka Fibonacci, wrote Liber Abaci, a book which has three claims to fame in financial circles. Firstly it was one of the first books to introduce the Arabic numbering system to the West. Secondly it laid out the foundations of modern bookkeeping. Thirdly it presented the number pattern known as the Fibonacci sequence, although this had been known long before by Indian mathematicians. Only the latter has little significance in the development of science and business but, naturally, it’s the one


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ValueWalk

Bill Nygren: GE clearly 'a swing and a miss'

By Akhlaqahmed9941. Originally published at ValueWalk.

Bill Nygren: GE clearly ‘a swing and a miss’ [feedly] ]]> Get The Timeless Reading eBook in PDF

Get the entire 10-part series on Timeless Reading in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Value investor Bill Nygren increases stake in General Electric from CNBC.

...

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Phil's Favorites

Amazon Unveils 20 City Finalists For HQ2, Expects To Create 50,000 Jobs In Winning City

 

Amazon Unveils 20 City Finalists For HQ2, Expects To Create 50,000 Jobs In Winning City

Courtesy of Zero Hedge 

On Thursday morning, Amazon announced that it had reviewed 238 proposals from across the U.S., Canada, and Mexico to host HQ2, the company’s second headquarters in North America, and has has chosen the following 20 metropolitan areas to move to the next phase of the process (in alphabetical order):

  • Atlanta, GA
  • Austin, TX
  • Boston, MA
  • Chica...


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Zero Hedge

Amazon Unveils 20 City Finalists For HQ2, Expects To Create 50,000 Jobs In Winning City

 

Amazon Unveils 20 City Finalists For HQ2, Expects To Create 50,000 Jobs In Winning City

Courtesy of Zero Hedge 

On Thursday morning, Amazon announced that it had reviewed 238 proposals from across the U.S., Canada, and Mexico to host HQ2, the company’s second headquarters in North America, and has has chosen the following 20 metropolitan areas to move to the next phase of the process (in alphabetical order):

  • Atlanta, GA
  • Austin, TX
  • Boston, MA
  • Chica...


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Digital Currencies

How a Criminal Defense Attorney Thinks About Crypto Currency

 

How a Criminal Defense Attorney Thinks About Crypto Currency

Courtesy of 

You are all in for a very special treat today. On the heels of last week’s guest post, in which the Unassuming Banker looked at crypto from a traditional IB’s view, I’ve got a new guest post from a friend of mine who is about to give you a perspective on the nascent asset class you’ve not read before. 

...



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Insider Scoop

AlarmCom Is A Rare Home Automation, IoT Play, Jefferies Says In Upgrade

Courtesy of Benzinga.

Related ALRM The Market In 5 Minutes: Jobless Claims Fall, Walmart Upgrade, Cryptocurrencies 38 Biggest Movers From Yesterday ...

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Chart School

Weekly Market Recap Jan 14, 2017

Courtesy of Blain.

After 3 days of mild “rest” – and the first down day of the year (!!) for the S&P 500, bulls came back with bells on Thursday and Friday, driving indexes to record highs yet again.  This is starting to get “parabolic”… some shades of the type of things we saw in 1999.  (See the S&P 500 and NASDAQ charts below)  The S&P 500 gained 1.6% and the NASDAQ 1.7% for the week.

“This reminds me of January 2000,” said Kent Engelke, chief economic strategist, at Capitol Securities Management, which manages $4 billion in assets, referring to the nearly unceasing climb to records for stocks and the unease it can inspire.  “It’s scary, the unrelenting advance,” he added.

“The move isn’t about fundamentals...



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Biotech

How Alzheimer's disease spreads throughout the brain - new study

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

 

How Alzheimer's disease spreads throughout the brain – new study

Courtesy of Thomas E CopeUniversity of Cambridge

Harmful tau protein spreads through networks. Author provided

Alzheimer’s disease is a devastating brain illness that affects an estimated 47m people worldwide. It is the most common cause of dementia in the Western world. Despite this, there are currently no treatments that are effective in curing Alzheimer’s disease or preventing its relentless progressio...



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Mapping The Market

Trump Admin Bans CDC From Using Words Like 'Science-Based,' 'Diversity'

By Jean-Luc

These are the policies of a theocracy, not a modern democracy:

Trump Admin Bans CDC From Using Words Like ‘Science-Based,’ ‘Diversity’

The Trump administration has prohibited the Centers for Disease Control and Prevention (CDC) from using words like “science-based,” “diversity,” and “transgender” in their official documents for next year’s budget, according to the Washington Post.

Senior CDC budget leader Alison Kelly met with the agency’s policy analysts on Thursday to announce ...



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Members' Corner

An Interview with David Brin

Our guest David Brin is an astrophysicist, technology consultant, and best-selling author who speaks, writes, and advises on a range of topics including national defense, creativity, and space exploration. He is also a well-known and influential futurist (one of four “World's Best Futurists,” according to The Urban Developer), and it is his ideas on the future, specifically the future of civilization, that I hope to learn about here.   

Ilene: David, you base many of your predictions of the future on a theory of historica...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



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Kimble Charting Solutions

Brazil; Waterfall in prices starting? Impact U.S.?

Courtesy of Chris Kimble.

Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.

CLICK ON CHART TO ENLARGE

EWZ is facing dual resistance at (1), while in a 9-year down trend of lower highs and lower lows. The counter trend rally over the past 17-months has it testing key falling resistance. Did the counter trend reflation rally just end at dual resistance???

If EWZ b...



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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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