How the Mathematics of Fractals Can Help Predict Stock Markets Shifts

Using Fractals to Identify Market Anomalies

Marco Tavora Ph.D.
Towards Data Science
14 min readJun 16, 2019

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Image by Arek Socha from Pixabay.

In financial markets, two of the most common trading strategies used by investors are the momentum and mean reversion strategies. If a stock exhibits momentum (or trending behavior as shown in the figure below), its price on the current period is more likely to increase…

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