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To: Julius Wong who wrote (220)8/3/1998 8:43:00 PM
From: ftth  Read Replies (1) | Respond to of 237
 
Hi Julius, thanks for stopping by. I guess I'd need to better understand the calculation you are doing before I could comment. As I'm sure you're aware, there are several books on the topic of fractals/chaos theory applied to the markets.

There's a quote (which was originally by Hemmingway I think) that goes something like this: "don't confuse activity for achievement" (or in our case, don't confuse motion for progress). In the case of stock prices, depending on the interval used, we can have motion with no net progress, or motion that leads somewhere (higher or lower). Are you concentrating on the "trading range" type of motion or the motion within a net movement?

Do you require, for example, a volatility measure stay within some bounds as a qualifier on whether you consider the fractal dimension valid over a given time period? Are you using closing prices only? If you get a chance, please elaborate on what you're using and what you've tried.

dh

P.S. Please bear with me in my delayed responses. I haven't been able to check in as often as I'd like lately, and I expect that will continue for a while yet.