I was reading some pages in Professional Automated Trading by Eugene Durenard when I came across this chart:
The caption says: "S&P Absolute Return Distribution: Log-Log Scale".
The brief description in the text says:
[The] log-log scale shows the fat tails and a power-law fit of the absolute returns of the S&P index sampled at time scales from ticks to years.
The lack of a label on the y-axis, and the lack of units of both axes makes it difficult for me to understand the plot. I am also unsure what "absolute normalized move" means.
Could you explain what the chart is saying? What am I looking at?