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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures

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To: NickSE who wrote (38455)10/24/1999 12:41:00 PM
From: GROUND ZERO™  Read Replies (1) of 44573
 
Wow... that looks like a great film... I have to see it..... it's interesting that they also incorporate Kabbalah in their work... I studied Kabbalah for nine years and during that time I never made the leap from its applications to life itself to its relevance to the markets, but after I left the studies behind, I began to realize the connection is real... at least as an attempt to reconcile and quantify the Chaos Theory as it would be applied to these markets...

The Chaos Theory can be generally defined as the study of forever-changing complex systems. Discovered by a meteorologist in 1960, chaos theory contends that complex and unpredictable results will occur in systems that are sensitive to small changes in their initial conditions.

Although chaotic systems appear to be random, they are not. Beneath the random behavior patterns emerge, suggesting, if not always revealing, order. Recognizing that the stock market is a non-linear, dynamic, we can apply the principles of Chaos Theory in order to determine the pattern behind apparent random nature of market prices.

Apart from the stock market, Chaos Theory can be used to model other highly complex systems, including everything from population growth to epidemics to arrhythmic heart palpitations. When applying chaos theory, it is revealed that even something as seemingly random as a dripping faucet has an order behind it.


My Best Regards.....

GZ

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