Fractal Market Hypothesis

Definition: [crh] The fractal market hypothesis states that (1) a market consists of many investors with differDefinition: ent investment horizons, and (2) the information set that is important to each investment horizon is different. As long as the market maintains this fDefinition: ractal structure, with no characteristic time scale, the market remains stable. When the market's investment horizon becomes uniform, the marDefinition: ket becomes unstable because everyone is trading based upon the same information set. Theory due to Ed Peters.

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