STOCKS & COMMODITIES magazine. The Traders' Magazine

Register or Log In — Traders.com and STOCKS & COMMODITIES magazine

  |  JAN 1994

Polarized Fractal Efficiency by Hans Hannula, Ph.D., C.T.A.

Polarized Fractal Efficiency By Hans Hannula, Ph.D., C.T.A. What is fractal geometry, anyway, and how do you use it? Well, you'll find out here. Hans Hannula of MicroMedia describes the construction and use of an indicator derived from fractal geometry, the mathematics that describe chaotic systems. Most chaotic systems produce some form of graphic representation. For example, turbulent flow in a stream produces swirls, eddies and vortices. Early chaos researchers found that the triangles, squares, lines and cubes of Euclidean geometry simply did not help in describing, studying or understanding their research problems. Fortunately, mathematician Benoit Mandelbrot recognized this problem and solved it by describing fractal geometry. As he studied various problems being researched, he realized that many of these problems had in common graphic representations of a very squiggly line. So he asked himself the profound question, ""What is the dimension of a squiggly line?"" The problem can be represented as shown in Figure 1. A straight line has a dimension of one. A plane surface has a dimension of two. A squiggly line has a dimension between one and two, depending on how much it squiggles. The dimension of the line is not an integer like 1, 2 or 3 but can be a fraction, leading to the term fractional or fractal dimension. Mandelbrot discovered that many chaotic systems had a constant fractal dimension. Others discovered that systems with the same fractal dimension had other properties in common. Thus, fractal dimension became an important tool in chaos work.

by Hans Hannula, Ph.D., RSA, CTA

Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99

NOT A SUBSCRIBER?

To continue reading, sign-up for trial access to Traders.com and the S&C Archive37,000 pages of trading ideas!




After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.



DEPARTMENTS: Advertising | Editorial | Circulation | Contact Us | BY PHONE: (206) 938-0570

PTSK — The Professional Traders' Starter Kit
Home — S&C Magazine | Working Money Magazine | Traders.com Advantage | Online Store | Traders’ Resource
Add a Product to Traders’ Resource | Message Boards | Subscribe/Renew | Free Trial Issue | Article Code | Search

Copyright © 1982–2024 Technical Analysis, Inc. All rights reserved. Read our disclaimer & privacy statement.