[Choronzon]

Diregard Taleb,the man cant trade (buying OTM puts and hoping for the world to end is not a trading strategy.)You are looking at basically a three regime model,(standard statistical events,macro breakdown,and "dont know").The problem is "fractals" is not a decent way to distinguish the three states,so now you have 3 problems. For what its worth I think Mandelbrot was onto to something but its a long way away from a trading strategy.You could decompose movements over different frequencies ("Fractal Self Similarity) and test for some sort of state wise relationship between recent micro and macro movements.Im largely sure this will exist but extracting a leading indicator out of this may be difficult.

[rismay]

I know this is late: but you get what I'm talking about: You could decompose movements over different frequencies ("Fractal Self Similarity) and test for some sort of state wise relationship between recent micro and macro movements. That's where the channel patterns come in - they are self similar at different time scales. The rules are pretty well known, but getting them coded is a different story. I always find MACD strategies which are only approximations.