Technical analysis: tilting at chaos.
Some technical investors are turning to chaos theory in an attempt to plot the markets. Chaos theory teaches that apparently random changes in systems as varied as financial markets and the weather may be described by a simple set of equations. Those who are able to extract these nonlinear equatio...
| Publicado en: | Economist Vol. 324; pp. 70 - 71 |
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| Formato: | Artículo |
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Economist Newspaper Limited
August 15 1992
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | Some technical investors are turning to chaos theory in an attempt to plot the markets. Chaos theory teaches that apparently random changes in systems as varied as financial markets and the weather may be described by a simple set of equations. Those who are able to extract these nonlinear equations from the patterns of financial charts should be able to predict future prices. While not even the most ardent devotees of chaos theory aspire to find the formula that would explain a market, many claim to have found parts of it, often with the help of an intelligent computer. The program that British mathematician Andrew Colin has written for Citibank to help detect nonlinear trends in currency markets is discussed. |
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