June 14, 2023

MarketMap™ 2023 #12 Fractals TEM and Trade Ideas

Basics, fractals are patterns that are similar across different scales. They are created by repeating an uncomplicated process. The fractal business model creates a company, out of smaller companies, which in turn is made from smaller companies and so the pattern continues.

The Fractal Nature of Elliott Waves: Waves within Waves

Elliot Waves are fractals. This means that each wave is made up of self-similar sub-waves that have some relevance in the market. In other words, the same 1-2-3-4-5 up-a-b-c down pattern that makes up the basic Elliott Wave pattern can be seen in some form or fashion as you zoom in and zoom out. Same holds true of bear markets.

These unfolding trend structures are labeled according to fixed rules with the result providing the correct look. Each degree trend (size or proportion) is tied to the rules and related market price and market sentiment events confirming the count is correct.

I understand that many look at bar charts and see random coming and going. To an experienced eye the patterns jump off the computer screen. That does not mean 100%-win rate, but there is an edge.  Without getting into too many basics here, going right to the gist of this report is the big profit opportunity from irregular tops. Plus, you can work the stop loss to favor your tolerance but working down from the daily bars I will show here to the 60 minute and 15 minutes.

p.s. Contrary Thinker uses its volatility-based model to predict market dynamics thus filling in a void for EWT. 

This work by Jack Cahn is licensed under a Creative Commons Attribution-NonCommercial 4.0 International