Market crashes are anomalous features in the financial data fractal landscape

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.

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