Odd Coincidence + Piggish Peg = Potential PrecisionBasically stumbled upon a sequence of daily candles from June/July 2019 that looked identical to the 30-minute chart I was watching last night. I never use this timeframe and I also don't love watching tape until 1 AM, but today is an important day in terms of next month's direction.
Conclusion: See comments below for evidence, or simply wait and see if my Pig-Peg is right during the first two hours of trading. Recommend using it to trade the rest of the day, if so.
More importantly, If it turns out a near-exact resemblance, then that would provide empirical evidence for a very interesting concept about markets: that the S&P 500 Index is not only self-similar (for example, typically during a retracement of a pre-established area) but that when it does exhibit self-similarity on different timeframes (i.e. the Daily Chart at 3000 in 2019 is self-similar to current price movement at 3000), that it goes through the same sequence exact sequence at a accelerated pace.
Initial Thoughts if this Concept Backtests and Holds:
- Current 30-Min vs. 2019 Daily equates to a 48x decrease in the time it takes to complete the same sequence
- It is fair to posit that this particular instance is likely the largest timeframe differential in history because of how recently we crossed the 3000 threshold
- A fair example question would be "Does the time between newly established areas and retracement of a said area affect the time it takes to complete a given sequence"
- There are many other implications worth exploring and many other difficult questions that arise if this evidence holds up in any capacity
- It's not completely mind-blowing if you fully embrace the concept of fractals and harmonic price movements
Bottom Line: Nothing is proven until it is backtested, but feel that I have to share this publically in case it does have greater meaning.
On a less scientific note, if the Pig-Peg ties out, some serious cake can be made in the near future.
Let me know what you think and godspeed.
- The People's Pig
