Fractal Analysis as a Method for Predicting the Dynamics of the Enterprises Securities Value Based on Their Hidden Innovative Potential

Abstract

For success in the stock market, constant forecasting of market conditions and the value of securities is necessary. In addition to the basic methods, such as fundamental and technical analysis, used to predict market events, serious attention should be paid to fractal analysis. The study showed that along with the simplicity and originality, that method can take into account a rather serious component of the securities cost- the enterprise hidden innovative potential, which is currently at a fairly modest level. Nevertheless, when certain conditions are created, it is possible to realize the hidden characteristics of the enterprises innovative potential, which will cause an increase in the value of securities and a growth for the entire stock market. This article discusses the basic properties and nature of fractals, the scope of their application in the economic environment, and also highlights the advantages of the fractal approach in studying the dynamics of the stock market and the value of securities with regard to the hidden innovative potential of enterprises.

Multi-trend trade system for financial markets

“…The range of approaches to creating trading systems is quite wide: ♦ undamental analysis [11]; ♦ technical analysis [12]; ♦ statistical analysis [13,14]; ♦ text mining [15]; ♦ fractal analysis [16,17];…”