Mapping Chaos and Instabilities in the Financial Markets2

Daniel Oherein 2010-06-13

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Chaos theory is concerned basically with stable and unstable systems. Instability in market systems arises when there are intentional destabilisation of the functioning of a stable market due to greed, fear, rumours, strife, contentions, and purposeful 'short-selling' of an instrument for a quick profit .Both stable and unstable behaviour occurs in space called fractal. A fractal space has boundaries which enables us to map and observe stable and unstable behaviours.

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