Mathematics & Markets – A Helicopter View of major stock market indices – Mar 4th, 2018
Chaos theory mathematics - Abstract
When Chaos Theory mathematics starts to work on multiple distinct layers, it yields two time dependent price values for each distinct layer. The time dependency of these price values is a direct consequence of the irregular shape of Julia-sets. One of these price values represents the price-target for an underlying asset. This price-target equals the value an underlying asset will assume in future. The other price value is the price-edge and represents the lowest or highest value the underlying asset may assume without jeopardizing the price-target. In other words, the value of the underlying asset should stay within the boundaries of both time dependent price values generated by the method. This applies to all distinct layers. (See Part 1, Innovation).