Fractal Market Behavior: Silver Edition

I’ve written before about the importance of using different time frames to get different perspectives when you’re looking at a market chart.  My default chart is a 4 hour chart with 1 minute bars, which I  then toggle to a 1 day chart, 2 day chart, and then longer.

The impetus for this post was the recent price action in silver.  I’m using silver futures here, SI_F, and I found something interesting as I toggled through my different time frames:  they all looked the same!

Now, one of the great flaws of the human mind is its ability to see patterns where none exist.  I didn’t run R-squareds on these correlations, but I am confident that they do exhibit some sort of intriguing fractal price action.  Take a look;

Here’s the 4 hour chart, taken just before the close today (Friday, July 1st 2016)

Silver, 4 hour chart 7.1.16

Silver, 4 hour chart 7.1.16

The 1 day chart:

silver, 1 day chart 07.01.16

silver, 1 day chart 07.01.16

The 2 day chart:

silver, 2 day, 07.01.16

silver, 2 day, 07.01.16

The 1 week chart:

silver, 1 week, 07.01.16

silver, 1 week, 07.01.16

The 2 week chart:

silver, 2 week, 07.01.16

silver, 2 week, 07.01.16

The 1 month chart:

silver, 1 month, 07.01.16

silver, 1 month, 07.01.16

It’s not until you get to the 2 month chart that you start to lose that “pattern.”

silver, 2 month, 07.01.16

silver, 2 month, 07.01.16

Interesting, right?  So what does it mean?  Well, at its simplest level, it paints a clear picture of consistent and relentless paper manipulation of silver prices demand for silver (futures) over a variety of time frames.

related:  Gold, Platinum and Miners: Oh My

-KD