Forex Questions and Answers - FXAnswer

Fractal Geometry, pionereed by Benoit Mandelbrot, is the mathematics of size, shape and special relationships. Where it differs from standard (that is, Euclidean) geometry, is that it deals with shapes that are, by definition, infinitely irregular.

A fractal is a complex shape which, when viewed in finer and finer detail, shows itself to be made up of ever smaller parts, similar to the original.

Fractal Geometry has been employed to describe diverse behaviour in economics, finance, the stock market, astronomy, and computer science.

In Forex, fractal geometry has to do with the fact that most chart patterns will work on multiple time frames. Similar patterns repeat themselves throughout different trading time frames such as hourly, daily, weekly, etc.

Applying it in Forex trading means observing the patterns that take place at market reversals and trading those patterns as they repeat in your chosen timeframe. Within every monthly reversal pattern is a weekly reversal pattern that has within it a daily reversal pattern that has within it an hourly reversal pattern, and so on.

by

fxpie

1 year ago

A fractal is "a rough or fragmented geometric shape that can be split into parts, each of which is (at least approximately) a reduced-size copy of the whole," a property called self-similarity.

by

hanan

1 year ago

A Fractal is generally "a rough or fragmented geometric shape that can be split into parts, each of which is (at least approximately) a reduced-size copy of the whole," a property called self-similarity. The term was coined by Benoit Mandelbrot in 1975 and was derived from the Latin fractus meaning "broken" or "fractured." A mathematical fractal is based on an equation that undergoes iteration, a form of feedback based on recursion. A fractal often has the following features: * It has a fine structure at arbitrarily small scales. * It is too irregular to be easily described in traditional Euclidean geometric language. * It is self-similar (at least approximately or stochastically). * It has a simple and recursive definition. * It has a Hausdorff dimension which is greater than its topological dimension (although this requirement is not met by space-filling curves such as the Hilbert curve).

by

thegreeks

1 year ago

Good article on it

Source(s):

http://olesiafx.com/ Bill.Williams.Trading.Chaos.Applying.Expert.Techni ques.To.Maximize.Your.Profits.pdf/3.4.stock- market.stock-investing.online-stock-trading.html

by

fuji022

1 year ago

. In technical analysis, an indicator of the reversal of the previous trend. It is shown on a candlestick chart as a series of five candles, representing five trading days. A bullish fractal occurs when the lowest low of any trading day is represented by the middle candle, with two successively less low trading days on each side. This is seen as a buy signal. A bearish fractal occurs when the highest high of the five days is represented by the middle candle, with two successively less high trading days on each side. This is seen as a sell signal.

by

Suneetha

1 year ago