|
PureBytes Links
Trading Reference Links
|
Here is something of a simplistic explanation from the
Metastock archives that I wrote about a year ago:
http://www.purebytes.com/archives/metastock/2001/msg00213.html
And a more in-depth discussion from the misc.invest.technical
archives at
http://groups.google.com/groups?selm=slrn9t8mg1.4uj.Jeff_Haferman%40eskimo.com
(careful with the URL above, sometimes Yahoo breaks them apart).
I would also say CAREFUL with some sites that will try
to sell you razzle-dazzle magical fractals to solve all your
trading problems and make you rich... you know, the websites
with flashing glitzy graphics.
Read all you can about the mathematics of fractals, but
making money in the market is more a matter of sound
money and risk management than it is a matter of magical
fractal formulas.
Jeff
James Cooley wrote:
>Hi Joe,
>
>Thanks for the reply.
>
>Of course you haven't seen the term 'jaggedness' because I'm not a
>mathematician nor do I pretend to know very much. But this much I think I
>understand, and please correct me if I'm wrong:
>
> 1. Stock charts, like shorelines, exhibit an irregularity of contour
>irrespective of scale quantifiable as a "fractal dimension."
>
> 2. To me it follows that *if*, over a long term, the stock price
>displays a certain degree of jaggedness -- say a fractal dimension of 1.5
>(where 1.5 is more jagged than 1.3); *and* during a shorter term (a smaller
>scale) that jaggedness decreases to say 1.3 it should tell me something.
>But what is it saying in regard to tomorrow's price?
>
> 3. I'd think it would say the price would tend to become more jagged.
>
>Maybe it says something else entirely?
>
>Also, I'm not sure how to differentiate between what this fractal dimension
>would tell us vs. what a volatility study would demonstrate.
>
>
>BTW, what are "Bill William's alligator and oscillator analysis
>calculations" ?
>
>To answer my own question, thanks Steve Wiser -- I'll take a look at
>Profitunity's site, but I'll tell you the first thing I do when I load a
>version of MSWIN is hide all that blatantly commercial stuff. I like to
>figure this stuff out on my own -- or at least the principles.
>
>Pardon if this comes through strangely; I'm new a this list and am trying
>get everything flowing through Outlook Express.
>
>BTW, I notice stuff gets posted on the Yahoo groups site long before I get
>the messages forwarded to my email account. Is this normal?
>
>
>Regards,
>
>Jim
>
>From: Arsk0jn@xxxx
>Date: Mon Nov 19, 2001 7:42 pm
>Subject: Re: [Metastockusers] Fractal and Chaos Theory
>
>
>Hi Jim,
>We have had a number of discussions of chaos theory on this and the
>Metastock
>site in the past. I would be glad to try and answer your questions...if I
>could understand them. I have never seen the term "jaggedness" used in the
>mathematical treatment of chaos theory. Is your "jaggedness" what is
>referred
>to in chaos theory as "aperiodic behavior "? Also what is it you want to
>determine that isn't provided for you in Bill William's alligator and
>oscillator analysis calculations?
>Regards,
>Joe Nemecek
>
>
>
>
|