Fractals and Support and Resistance

Support and resistance lines for using with Financial Markets are tricky to set. One of the reasons for this is that financial market data often obeys fractal properties, and the markets themselves behave in a chaotic fashion. Fractals are self-similar (i.e. look similar at multiple scales), and so don't have any "special" scales associated with them. But support and resistance lines inherently assume that there are special levels at which prices will find it harder to break through, and that breaking through these should be seen as a trading signal. While past behavior of the market is a useful guide to future behavior, these support lines should not be taken too literally, and are "useful" rather than scientific. This video discusses ideas around that. Fractals are powerful tools for understanding forex, stock market, and other financial market strategy. Some technical analysis experts say they use "fractals" in their analysis of financial markets like forex, but this type of "fractal" has virtually nothing to do with what fractals really are (by which I mean the mathematical theory from which the term "fractal" comes from). And the real fractals are extremely useful for understanding these markets, and understanding them can only help improve your investment strategy making. DISCLAIMER: This video is intended as an overview of the character of financial market data, for entertainment and educational purposes only. It is not intended as specific advice on how you should invest or trade in financial markets. No specific strategies or recommendations are provided, and you should seek professional advice before making investment and stock trading decisions. I am not a financial adviser or broker. Always seek out qualified advice and carry out your own due diligence before commencing any form of investing or trading. Koch fractal graphic: António Miguel de Campos - self made based in own JAVA animation. Public domain.