Analog fractal of the S&P 500 (97'-13') and Bitcoin (21'-today)
In 1987 Paul Tudor Jones and Peter Borish looked at a chart of the Dow Jones from 1929 and compared the price action to what they were seeing in the markets at the time.
The Tudor Futures Fund made 62 percent in the month of the crash, October 1987.
From the documentary "Trader" (which you might find on YouTube), Jones said, “our analog model to 1929 had the collapse perfectly nailed. The two markets demonstrated a remarkable degree of correlation.”
Disclaimer: This post is not intended to claim any predictive value in comparing the charts of the S&P and Bitcoin in different time periods and time frames. I cherry picked a random date and time and the shoe fit well. That does not mean this comparison is an actionable trade. Price action is largely random but tends to have similar behavioral patterns that could be used to structure trade set-ups. However, I do think this analog could be used as guidance. For example, if Bitcoin fills the gap around 25k and closes above its previous day's high, you could get long against that low. If Bitcoin closes above its all time high set in November, you could buy/add on that breakout, similar to the breakout of the S&P in 2013.
The Tudor Futures Fund made 62 percent in the month of the crash, October 1987.
From the documentary "Trader" (which you might find on YouTube), Jones said, “our analog model to 1929 had the collapse perfectly nailed. The two markets demonstrated a remarkable degree of correlation.”
Disclaimer: This post is not intended to claim any predictive value in comparing the charts of the S&P and Bitcoin in different time periods and time frames. I cherry picked a random date and time and the shoe fit well. That does not mean this comparison is an actionable trade. Price action is largely random but tends to have similar behavioral patterns that could be used to structure trade set-ups. However, I do think this analog could be used as guidance. For example, if Bitcoin fills the gap around 25k and closes above its previous day's high, you could get long against that low. If Bitcoin closes above its all time high set in November, you could buy/add on that breakout, similar to the breakout of the S&P in 2013.