Saturday, November 15, 2008 8:02:39 PM
Representative Example...
Using the MSCI U.K. index, in a weekly time frame, my estimate of phi cubed works well here for both bull/bear markets. I reckon that about 13-15 ladder rungs would be required and in extraordinary times, say 18 to extend the "bumpers" out for black/white swan events.
Smaller fractals could be captured using smaller time frame charts, but a once a week approach would likely do well. When the trend shifts back up, then the ladder is "rescaled" to accommodate it, thus it is totally dynamic to whatever the consensus is to valuations or supply/demand.
Using the MSCI U.K. index, in a weekly time frame, my estimate of phi cubed works well here for both bull/bear markets. I reckon that about 13-15 ladder rungs would be required and in extraordinary times, say 18 to extend the "bumpers" out for black/white swan events.
Smaller fractals could be captured using smaller time frame charts, but a once a week approach would likely do well. When the trend shifts back up, then the ladder is "rescaled" to accommodate it, thus it is totally dynamic to whatever the consensus is to valuations or supply/demand.
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