A related concept from the book: The Misbehavior of Markets by Mandelbrot
In fractal analysis, time is flexible. The multifractal model describes markets as deforming time-expanding it here, contracting it there. The more dramatic the price changes, the more the trading time-scale expands. The duller the price chart, the slower runs the market clock. Some researchers have tried linking this concept to trading volume: High volume equals fast trading time. That is a connection not yet established, and it need not be. Time deformation is a mathematical convenience, handy for analyzing the market; and it also happens to fit our subjective experience. Time does not run in a straight line, like the markings on a wooden ruler. It stretches and shrinks, as if the ruler were made of balloon rubber. This is true in daily life: We perk up during high drama, nod off when bored. Markets do the same.
The fib structure justifies the curved edges of collective fractal. When price breaks the curve, it loses probability "points" of going accordingly with the slope.
1st channel:
2nd channel:
Presence of another colored channel plays a role of justifying the levels of previous channel connecting ATH's.
In fractal analysis, time is flexible. The multifractal model describes markets as deforming time-expanding it here, contracting it there. The more dramatic the price changes, the more the trading time-scale expands. The duller the price chart, the slower runs the market clock. Some researchers have tried linking this concept to trading volume: High volume equals fast trading time. That is a connection not yet established, and it need not be. Time deformation is a mathematical convenience, handy for analyzing the market; and it also happens to fit our subjective experience. Time does not run in a straight line, like the markings on a wooden ruler. It stretches and shrinks, as if the ruler were made of balloon rubber. This is true in daily life: We perk up during high drama, nod off when bored. Markets do the same.
The fib structure justifies the curved edges of collective fractal. When price breaks the curve, it loses probability "points" of going accordingly with the slope.
1st channel:
2nd channel:
