Two Fractal Overlap Time Series: Earthquakes and Market Crashes

TL;DR

This paper uncovers similarities between earthquake and stock market time series using fractal models, proposing an anticipation method for crashes based on these insights.

Contribution

It introduces a novel approach linking fractal overlap models to real-world earthquake and market crash data, enabling crash prediction.

Findings

Identified fractal overlap features in earthquake and stock market data

Proposed a method to anticipate crashes based on fractal overlap analysis

Demonstrated similarities between model and real-world time series

Abstract

We find prominent similarities in the features of the time series for the (model earthquakes or) overlap of two Cantor sets when one set moves with uniform relative velocity over the other and time series of stock prices. An anticipation method for some of the crashes have been proposed here, based on these observations.