Fractal Analysis by James R. Williamson Jr.
ARTICLE SYNOPSIS ...Stocks & Commodities V. 25:4 (36-39): Fractal Analysis by James R. Williamson Jr.
Can the complex behavior of the stock market really be reduced to something simple?
This article will demonstrate that, over the last 30 to 40 years, the seemingly complex behavior of the stock market (as exemplified by the Standard & Poor's 500) can be reduced to one essential principle: impulse and correction. The values of impulse and correction can be specifically measured and are found to be 3 and -1. The complexity of the market is then generated by the self-replication of these two numbers. More formally...
AUTHOR: James R. Williamson Jr.DATE: APR 2007SUBJECT: Fractals