Quote from: chessnut on October 20, 2014, 03:07:16 AM

Quote from: Nrcewker on October 20, 2014, 03:00:25 AM

It seems to be pointless

Fractals occur in many natural systems. They are relevant to how the market behaves.

@chessnut
Thank you for your comments.

Fractals in candlestick charts assist in identifying reversal points in the market. Patterns consist of many fractals. When fractals tend to repeat, they produce similar patterns.

The basic rule is that a fractal consists of 5 candles. However, when zooming out, a specific part of a pattern can be used as a general fractal (for simplicity and understanding) in order to investigate repetition of a trend or a turning point and help to justify a thesis.

It is the same with relation to different time intervals. For example, the 1hr when broken down it consists of 2x30min bars, or 4x15min bars, or 12x5min bars etc.

Although beautiful, fractals found in nature have nothing to do with chart fractals.