RE: [RT] Fractal and Armstrong's 1.075 year cycle and April 16, 2009 PEI date, RealTraders Email List Archive

Again, Elliott Waves are a method of identifying self similar fractals. I cannot imagine that you have not studied Elliott Waves if you’ve developed a fractal system. You could spend weeks on Elliott Wave methodology and it’s been around with R.N. Elliott first identified its ‘rules’ and has been Robert Prechter popularized its use in the ‘70s via “Elliott Wave Principles.”

The one fractal practitioner who ‘headlines’ his work as more fractal geometry than EW and with whom I have direct familiarity is Hank Wernicki. He frequents Yelnick’s site and has a site at http://www.elliottfractals.com/. During the rapid decline period of August 2008 to November 2008, he had some fractal calls relying more upon his methodology than EW that were within minutes of his prediction. Huge moves. More recently, his hand has gone cold, having called for a continuation of the downtrend about 2 weeks ago….

Market analogs are, themselves, analogs. Most often they’re visual and not discovered by a system for that purpose, but many analysts follow analogs. You can’t help but read the comparison charts to prior bears, etc. But many analysts reduce their analysis to correlation statistics and keep weekly running tabs on correlation (Larry Tomlinson’s service).

Again, my primary concentration is Elliott Waves which is a system of recognizing fractal generation and execution. What might your system look like conceptually?

Jim

From: realtraders@xxxxxxxxxxxxxxx [mailto:realtraders@xxxxxxxxxxxxxxx] On Behalf Of Jim White
Sent: Thursday, March 26, 2009 6:07 PM
To: realtraders@xxxxxxxxxxxxxxx
Subject: Re: [RT] Fractal and Armstrong's 1.075 year cycle and April 16, 2009 PEI date

I am familiar with Mandelbrot's work on unifractals and multifractals and other than my own non linear model and use of fractals, I was not aware of anyone else making a practical application to trading. If you could provide more detailed references as to where this approach originated and is described, I would appreciate it.

Jim

----- Original Message -----

From: Jim Ross

To: realtraders@xxxxxxxxxxxxxxx

Sent: Thursday, March 26, 2009 2:28 PM

Subject: RE: [RT] Fractal and Armstrong's 1.075 year cycle and April 16, 2009 PEI date

A self organizing geometric form. Recognizing the waves of the parent fractal and locating the initial waves of a child fractal allows you to enter a trade that anticipates the last waves of the child fractal with higher probability. Benoit Mandelbrot (Nobel mathematician), among others, claims chaos theory and non linear systems can only be anticipated via fractal geometry. Elliott Wave methodology is a method of anticipating fractal generation.

http://en.wikipedia.org/wiki/Fractal

http://www.amazon.com/Mis-behavior-Markets-Benoit-Mandelbrot/dp/0465043550

http://www.economymodels.com/factalmarkets.asp

http://www.tradingfives.com/articles/elliott-wave-fractals.html

There are hundreds of references. There are websites dedicated to fractal recognition and trading.

From: realtraders@xxxxxxxxxxxxxxx [mailto:realtraders@xxxxxxxxxxxxxxx] On Behalf Of Jim White
Sent: Thursday, March 26, 2009 4:39 PM
To: realtraders@xxxxxxxxxxxxxxx
Subject: Re: [RT] Fractal and Armstrong's 1.075 year cycle and April 16, 2009 PEI date

Could you please provide the definition of the "fractal" relative to market action and a reference for its use in market analysis.

Jim White

----- Original Message -----

From: Jim Ross

To: realtraders@xxxxxxxxxxxxxxx

Sent: Thursday, March 26, 2009 10:51 AM

Subject: [RT] Fractal and Armstrong's 1.075 year cycle and April 16, 2009 PEI date

I’ve been following a fractal the move from October 11, 2007 “wave 1” to March 10, 2008 being the parent of the fractal (parent) of the wave from June 2008 to present (child) in QQQQs. If you look at the last small portion of 2008 parent fractal, you see a clear triangle and then a quick wave 5 to end that wave on March 17, 2008. Here’s the last days of the 2008 parent fractal:

Here’s the thought. If you count backwards exactly one Armstrong interval of 1.075 years (per “It’s Just Time” page 25) from today, March 26, 2009, you get February 27, 2008. That is point 4 e on the above chart. That implies Robert’s chart that calls for the following end of the child fractal is occurring today, March 26, 2009..

Now, do one more little test. I’m suggesting the mythical wave 5 ends on April 16, 2009 which is Armstrong’s PEI date. Now, subtract 1.075 years from April 16, 2009 and you get March 19, 2008. Allowing 1 day for rounding (1.075 years is 392.375 days), then you’re within 1 days of the end of the parent fractal’s wave or point 5 of 5 on the first chart.

One last thing. March 26, 2009 is a McHugh Phi change in trend date. Except for his March 13, 2009 Phi date, they have been very accurate over the course of this bear.

Just some thoughts in case it, as improbable as it is, does occur.

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