Chaos Theory is the study of non-linear dynamics. Its principle purpose is to prove that there is order in randomness.
The Forex, being non-linear, suits this type of theory – the theory that from repetitive, seemingly haphazard behaviour, an orderly pattern emerges.
In 1960, a meteorologist named Edward Lorenz set up an experiment in which he attempted to model the weather. His experiment eventually led to what has been termed ‘the butterfly effect’ whereby the difference in the starting points of an ...Continue Reading →