ARTICLE SYNOPSIS ...Market Prediction Through Fractal Geometry by Victor E. Krynicki, Ph.D. Few have heard of fractal geometry and fewer still know how to use it. But it is a powerful tool with which to analyze nonlinear systems and is the main alternative for analyzing systems that defy development of predictive nonlinear equations. Krynicki presents a method by which to search for fractal patterns. Since its inception, technical analysis has been dominated by linear and/or statistical smoothing, averaging and estimation techniques. These techniques come in a vast a array of forms: linear regression, quadratic...
ARTICLE SYNOPSIS ...Nonlinearity, Chaos Theory and the DJIA by Victor E. Krynicki, Ph.D. Here's a fresh look on using nonlinear systems and chaos theory to understand the markets. Concepts deriving from nonlinear systems and chaos theory have begun to be applied to understand stock market behavior. In a STOCKS & COMMODITIES article, Hans Hannula presented an attempt to apply the concept of the strange attractor to major price swings, pointing out that stock market behavior evinces both linear and nonlinear domains. Within a linear domain of the stock market, a proportional relationship controls price moves, si...