Nifty - Fractal Nature “History Repeats Itself”

Nifty - Fractal Nature “History Repeats Itself”

By Waves Strategy Advisors, For more information visit www.wavesstrategy.com To subscribe to daily equity research “The Financial Waves” write to helpdesk@wavesstrategy.com or call on +91 9920422202 / +91 22 28831358

Earlier we had published an article on 14^th March 2013 about Fractal nature which was seen on Nifty 60 mins and 10 mins chart.

On 12^th April we have witnessed similar scenario of Fractal nature on 5mins chart. Fractal nature helps us to predict what can be the plausible scenario by seeing the past movement. This means that what happens in past repeats in future. In simpler terms, the pattern which has occurred in the past and its implication will be the same in future but ratio will be different.

The following excerpt is been picked from our report “The Financial Waves” which is published daily. In this report we had shown Fractal Nature concept on 5 mins chart of Nifty.

Nifty 5 mins chart: Fractal Nature

Fractal Nature:

Indian markets have been exhibiting a similar structure on different time scales very often. The importance of Fractal nature confirms the existence of repeatable patterns on different degrees that makes the market movements predictable. The above Fractal chart is very rare since it has occurred very close to each other and on time scale of 5 mins. On 10^th April Nifty had a Gap up opening and formed a very clear zigzag down move after which a sharp rally took prices above the opening bar high. A very similar action happened yesterday when Nifty had a Gap up opening and a down zigzag pattern was again followed by sharp move on upside. It is indeed a thrilling experience to see such systematic behavior exhibited by markets on a time scale as small as 5 mins! This is also a food for thought for people who believe that freely traded markets move randomly or it can be manipulated!!!

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