Due to their previously discovered fractal nature, financial data patterns are self-similar when scaling up. New research shows that the most extreme events in financial data dynamics—reflected in very large price moves—are incompatible with multi-fractal scaling. These findings have been published in European Physical Journal B by physicist Elena Green from the National University of Ireland in Maynooth and colleagues. Understanding the multi-fractal structure of financially sound markets could, ultimately, help in identifying structural signs of impending extreme events.
from Phys.org: Physics News http://ift.tt/1p8OaAD