What Does a Fractal Look Like?
And What Does It Have to Do with the Stock Market?
By Elliott Wave International
Although Ralph N. Elliott came to his conclusions 50 years before the new science of fractals blossomed, he took a step that current observers of natural processes have yet to take. He explained not only that the progress of the market was fractal in nature but discovered and described the component patterns. Find out more about the stock market and fractals in this excerpt. Read more.
Hi there. As i told you before, we are now working with a new software that automatically detects some kind of patterns. On todays example, and because the pattern shows up today, we will show you the Gartley pattern, maybe one of the most powerful patterns of harmonic trading. I'm sure most of you don't even know what is a Gartley (i didn't know it last week too), but if you google it i'm sure you clear all your doubts ;). Harmonic trading basis is establish a series of relations, Fibonacci numbers based, between price AND time, and draw a 2 dimensions pattern that can be used to identify the end of movement. Of course, no pattern can guarantee new highs or new lows. The most usual to get with these is a Fibonacci retracement 38,2%; 50% 61,8%, etc... A little confuse at the beginning but the screen shot speaks for it self.
Today was a strange day. NDX made new highs and DAX invalidate my count. On other hand SPX had a choppy session and it is difficult to label this pattern. Short time seem's that is missing one last wave to the downside. However, the odds suggest new highs will be made very soon.
P.S. Anyone having problems to add comments? I can't reply to none of you (Disqus problem ). Thanks to Creepy, Moguita, Jorge and Carlos for your analysis.
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