I made a final run down on my calculations and a thorough check and balance approach to each and every data points in my chart. Checking on the latest data i gathered and feeding them on the same formula for finding the average latency for the fractal dimension "D" of the index and subjecting them to numerous iterations to come up with a julia sets and ploting them up on my chart based on geometric rules and Fibonacci ratios then the new graph would be as follows.
Since, the stock market is a Fractal. What kind of fractal pattern is it?
Of the many different fractal patterns that appears in nature , the most prescribed with the highest similarity is the Brownian motion pattern or what they call the "Wiener process".
The Wiener process is a fractal and looks very much like stock price movements. It is a continuous time stochastic process that charts Brownian Motion and is used in the mathematical theory of finance as well as the Black-Scholes option pricing model. It is clearly self similar and the average features of the function do not change while zooming in.
Fractal dimension
There is no argument that market prices are fractal. Price charts look similar regardless of time frame. If you remove the labels from a five-minute chart, a daily chart, and a weekly chart, you would have difficulty telling them apart. Fractal shapes are self-similar because they have the same roughness and sparseness regardless of time interval. This self-similarity can be defined by the fractal dimension that describes sparseness at all magnification levels.
To determine the fractal dimension of a generalized pattern, we cover the pattern with a number N of small objects of several various sizes S. The relationship of the number of objects in two sets of sizes is:
The Fractal Dimension “D” is a measure of how completely a Fractal appears to fill space as one zooms down to finer and finer scales. So what is a fractal? It is a rough or fragmented shape that can be split into parts, each of which is at least similar to a reduced size copy of the original.
Swing chart
For day traders my recommended strategy is shown below:
Low Days- Nov 1-2 Bottom - Buy
High Days- Nov 7-8 Peak - Sell
Low Days -Nov 14-15 Bottom - Quick buy and Quick Sell
High Days -Nov 24-25 Bottom - Buy
Low Days -Nov 28-29 Nuetral - Hold
High days - Dec 5-6 Nuetral - Sell/ Hold
Low days - Dec 7-9 Bottom - Buy
I know for the disappointment of many ,I don't recommend specific entry and exit points for a specific stock; this is because i wan't for my fellow traders to trade with their own skill or prowess and to trade soley for their own risk. What i am just providing to everyone is the right timing when to execute their trade that increases their chances of success. Because the key for a successfull trade is a trading plan that was executed at the right timing, which make a big difference between success and failure.
'Timing is everything"-
PinoyGtrader
-caveat
For more info you can check the sources below:
http://en.wikipedia.org/wiki/Wiener_process
http://etfhq.com/blog/2011/02/12/fractal-dimension/
http://www.traders.com/Documentation/FEEDbk_docs/2010/06/Ehlers.html
