A fractal is a complex geometric shape that can be split into parts, each of which is a reduced-scale copy of the whole. Think of it as nature’s way of repeating patterns in a fascinating and infinitely intricate manner.
And what is its relationship to financial charts?
Fractals in financial charts refer to recurring patterns that appear at different scales. Traders sometimes use fractal analysis to identify trends and potential reversals in the market, applying the idea that similar patterns may indicate similar market behavior. It’s a way to find order in what might seem like chaos in the financial world.