The market is a natural system. Supply and demand are as old as the hills and can be simplified to a science, economics. Forces of the market act to restore equilibrium, it is the model of a simple sine wave. Because of interference, when external forces apply change to the market new waves must superimpose themselves in simple natural ratios of each other and expand into fibonacci ratios in complex systems. Just as every note on the piano is derived from a single pitch and the ratios 1/2 and 2/3. How can the market then behave naturally without fractals when there are practically an infinite amount of large and small forces at work within it?

The waves that roll up on the beach in cycles of seven at a precise interval are the result of a random system. every ripple cause by the gusty winds of a pressure system superimpose to form enormous wave. you cant predict the ripple, you can predict the wave but they are one and the same thing.

the grand average size of retracements in the dow jones calculated from opening price, closing price and average price is equal to 0.618. thats all retracements, great and small.