Chaos Theory Revealing How the Market Works

Summary:

Markets Are Complex Systems

Complexity – Combining Chaos and Patterns

Feedback and Randomness – Forming and Crushing the Bubbles

Element of Randomness

The Key to the Market

I Know First Algorithm – Seeking the Key

Interpreting the Results

Common fallacies about markets claim markets are unpredictable. However, chaos theory together with powerful algorithms proves such statements are wrong. Markets are chaotic systems with complex dynamics, yet to a certain extent we can make valid stock market forecasts. Using these forecasts generated by cutting-edge predictive algorithms together with a careful risk management strategy may give a trader a significant competitive advantage.