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#1

There are tons of books, articles, and views on chaos and fractals none of which has directly assisted the trader to trade the markets by chaos theory and fractal geometry or in fact shown that those ideas are in any way different to the prospects of traders than current methods. In this thread, we end all of that and outline a Multifractal trading methodology that shows why and how a method based those sciences is superior to Technical and Fundamental Analysis and is intellectually accessible to traders.
For the concept of a fractal market structure to be of any use at all, we need to know what a price fractal is, where it comes from, what it looks like and how it behaves in terms of the abstractions of chaos theory and the concreteness of traded markets. Now the link between chaos and fractals is rather simple because chaos is the result of an iterative process and fractals are defined by iterates. But until now if you asked to see what a price fractal looks like you will most probably draw a blank. We found and defined what a price or market fractal is and this means we have articulated the fractal footprint of markets (incontrovertibly).
So to gain the same insights as we have and understand well what we mean I have attached an MSPowepoint presentation file which will help us all get on the same page and so to share and gain insights from each other. At first the topic might appear mathematical but after slide 2 anyone can see it is something every trader (especially technical traders) can understand and relate to because in fact the concept of chaos once expressed as fractals is pretty straightforward. I sincerely hope everyone reviewing the slides (best on slide show because of the animations) will not only gain new knowledge that is generally useful in understanding the market further but will be open minded and ready to freely discuss the issues that arise. As much as possible lets keep to the topic in our exchanges. Best wishes

The Chaology of markets_Frx2.pptx
(2.66 MiB) Downloaded 245 times


#2
[QUOTE=Darkdoji]

............... As much as possible lets keep to the topic in our exchanges. Best wishes

[/QUOTE]
Hi Darkdoji
You are Welcome here,thanks for joining us [smile]
though you joined days ago but this is your first post.
regards
Indicator is just a tool.

Use it only if it can benefit you. Leave it if you don't know how to use it optimally.

#3
Many thanks I look forward to learning and sharing - that is the only way a trader can improve. Cheers

#5
The posted picture is very important from a mathematical view point in that a) it shows that chaos and fractals are sides of the same coin so that understanding fractals gives a trader a graphical understanding of chaos (because chaos and fractals are sides of the same coin)  b) It is exactly the same type of connection we made in the presentation slides "the chaology of markets." c) it reassures traders that in fact our thesis in the chaology is valid and dependable which means we have a way to read markets now without compare.


#6
[QUOTE=Darkdoji]The posted picture is very important from a mathematical view point in that a) it shows that chaos and fractals are sides of the same coin so that understanding fractals gives a trader a graphical understanding of chaos (because chaos and fractals are sides of the same coin)  b) It is exactly the same type of connection we made in the presentation slides "the chaology of markets." c) it reassures traders that in fact our thesis in the chaology is valid and dependable which means we have a way to read markets now without compare.[/QUOTE]

Darkdoji, THANKS for the thread, nice work!!!

#8
Darkdoji, very nice and interesting so far, but what should be the goal of this thread?  I use a M5 and a M1 chart of one pair to see the price action on the lower tf as confirmation on the M5 chart.
An example is the following hammer candle in H1 and what they look like on the lower tfs:

Hammer.png 

But that isn't really what you want, if I understand you correctly. When you take an academic book or paper you read the Introduction and the Conclusion first. Most of the papers and Theses I read where useless for my goals and I also always take a look on the results, but here we have none of that but the first part of the methodology. So we can't discuss or help or whatever.
Hammer.png

#9

Hi Krelian99,

Thank you for your direct and useful question. My primary goal is to share the views in the slides and have colleagues like you, introvert the key points and the knowledge on offer as a first step. Secondly, my hope was that the points contained in the slide share would evoke all sorts of comments and expressions which will lead to useful exchanges among colleagues. third, and as you can see I have posted two technical (i.e. mathematical) concepts related to the topic which traders can try out for the experience and the knowledge they provide or consider in forum (as would be the case with the Mandelbrot connection post). Multifractal analysis is not a strategy in trading (TA or otherwise) but a Methodology and if you trade by Multifractal analysis you may not necessarily persist in your current strategy because it allows a holistic view rather than partial views of the iterations we call price movement (TA is some sort of linearizion of the chaotic space) – as such and even now, one might contemplate the benefits of Multifractal analysis relative to TA and FA. At some point ahead, the discussions may progress to what kind of tools (indicators) would be appropriate for an approach like that and of course, there is no place better to discuss such issues than here with great coders like Mladen and mr. tools around. Of course, it is unusual to discuss TA or FA in this way because they are supposedly  “established” methodologies which few people question. But in this case, it would be interesting for instance to review the notion of fractals as espoused by Bill Williams and his indicators and the completely different way () in which fractals have been described in the chaology. I understand and appreciate your technique or strategy and may in the course of discussions highlight a view – but this is not (to my mind) a strategy thread as such so for now I shall merely note it and wait for an opportune time to share my thoughts if any. Finally, sir, if you have an alternative approach or definition of an aim for  the thread you think might be more welcome  or useful to members – I am certainly open to considering it – so long as it does not lead away from the primary aim of announcing the existence of a new and valid methodology and the spreading of what it is technically (i.e. mathematically) and how it differs from TA and FA.

Many thanks

PS: This is like a discussion about for instance what TA is, what it's theoretical foundations are, and what it takes to get a good hang.

#10
There are many interesting books and stuff to read, but since I have only one life and some other time-eating hobbies I have to cut things and evaluate their usage.
A setup that works for advanced traders is the mtf chart positioning on your table (two, three or all seven). As far as I know Bill Williams put some indicators on one chart and called that 'multi-dimensional' and 'related to the chaos-theory'. I'm not d'accord with that. Different indicators aren't different dimensions. In trading platforms you have the possibility to use indicators in mtf-mode. I absolutely don't like it, but I don't indicators either [wink] NTL, confirmations for your trading chart you can find in the lower and in the higher tf. If the tf is too low or too high you lag of seeing these fractals related to your trading chart.

A more practical but still enough theoretical approach to the Chaos-Theory is the Wavelet approach (big waves (from FA) needs long time, small waves (from TA) needs short time) and the time-frequency-map (e.g. Choi-Williams-Distribution which I highly recommend for signal-processing).

Chaoscharts.png
Chaoscharts.png



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