231117 Structural Dynamics and Fractal Geometric Trading Strategies
The aim is to identify the initial condition by observing the underlying structure of the market exchange.
Balancing Between Attractors
There exists a balancing act between attractions that allows us to identify profitable fractal phases.
Initial scenario condition to observe before deciding to invest
- Slowing momentum observed (2-3 valleys with the last two diverging)
- Balance measurement lines changing orientation
Balance Measurement Lines Changing Orientation
- Each balance indication measures the trend of different degrees.
- The crossing of the lower degree with the upper degree after two valleys without crossing is an initial condition of this dimension;
- this crossing would only occur in deceleration
Energy/Force Indicator
Events
There are three main events to look out for:
- In deceleration
- In acceleration
- In saddle
Event Details / States
What are the signals that trigger an event? An alignment of condition in the indicators generates a signal. The triggering of a signal and its validity can be a condition. This is very chaotic, I love it 😍!
Initial Condition: There would exist two previous states thus two different processes of state evaluation.
Indicating Attraction
There is a phase where there is no movement of interest. Where it's time to rest and enjoy life, where observe the resolution delay of creative tension.
Indicating a lack of attraction (oscillation) With attraction lines.
Structural Dynamics & Fractal Geometric Entry/Exit Strategies
It's the structuring dynamics that surround the observation of a fractal geometry that signal the transactional process.
The determinant of a condition initiating a transaction is a fractal surrounded by structuring dynamics.
The momentum having slowed down, the transactional facts will have a tendency to a change of trend similar to a rubber band that has reached the maximum tension.
Objectives
- The tops of the mountains of the momentum indication are identified as an indicator (IsPeak, IsValley);
- This indicator...
Indicator Development
- Adequate signals can be "inferred" from various indicators
- Indicators will allow us to identify initial or terminating transactional conditions
"Is Peak" and "Is Valley"
- Correspond to a trough or a crest of a significant number of periods (a complete movement would have 100-150 periods)
- The attraction force indicator: "Momentum period Accelerates" / "Momentum period Slows down" can be used to assess whether: "climbing" or "descending" towards the trough or the valley;
- The balancing indicator could be used to simply determine whether valleys and peaks need to be identified (useless when the Structure oscillates even less possible)
- Could the periods of the lower degree be useful? The higher one? They would facilitate the suggestion
Indicator and Machine Learning Algorithm
Machine learning would allow us to learn to indicate certain patterns;
- There are temporal variations that can be learned and indicated artificially;
- Challenge: current difficulty to identify the spectrum of the area to evaluate for valleys [the sequence to be evaluated is it taking place over 100 or 150 periods?]
- it may be more or less useful but a familiarization exercise with the integration of relevant intelligence to carry out.
Machine learning would allow us to learn to indicate certain patterns;
Move and Relationship to the higher degree
To be further explored.
References
Previous Work
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more on :Structural Dynamics and Fractal Geometric Trading Strategies
Structural Dynamics and Fractal Geometric Trading Strategies combine principles from structural dynamics and fractal geometry to develop trading strategies in financial markets. These strategies aim to identify patterns and trends in price movements to make informed trading decisions. Here is some information on these concepts:
Structural Dynamics:
- Structural dynamics is a field of study that focuses on the behavior of structures under dynamic loads, such as vibrations and oscillations.
- In the context of trading, structural dynamics refers to analyzing the dynamic behavior of price movements in financial markets.
- Traders use techniques from structural dynamics to identify patterns, trends, and potential turning points in price charts.
Fractal Geometry:
- Fractal geometry is a mathematical concept that describes complex and self-repeating patterns found in nature and various systems.
- In trading, fractal geometry is applied to analyze price patterns that exhibit self-similarity at different scales or timeframes.
- Fractals in trading are specific price patterns that indicate potential reversals or continuation of trends.
Fractal Geometric Trading Strategies:
- Fractal geometric trading strategies utilize fractal patterns to make trading decisions.
- These strategies aim to identify fractal patterns in price charts and use them as signals for entering or exiting trades.
- Fractal indicators, such as the Bill Williams Fractal Indicator, are commonly used in these strategies to identify potential turning points in price movements.
Key Components of Fractal Geometric Trading Strategies:
- Fractal Patterns: Fractal patterns consist of a series of price bars that exhibit specific characteristics, such as higher highs and higher lows (bullish fractal) or lower highs and lower lows (bearish fractal).
- Entry and Exit Points: Traders using fractal geometric strategies typically enter trades after the formation of a fractal pattern and exit when the price confirms the expected direction.
- Risk Management: Like any trading strategy, risk management is crucial in fractal geometric trading. Traders use stop-loss orders and position sizing techniques to manage risk and protect their capital.
Learn more:
1. Fractal Indicator: Definition, What It Signals, and How To Trade
2. Fractal Trading Strategy With Blaster Techniques 2023
3. How the Mathematics of Fractals Can Help Predict Stock Markets Shifts | by Marco Tavora Ph.D. | Towards Data Science