Until recently, such phenomena as the volatility of weather systems, the fluctuation of the shock market, or the random firing of neurons in the brain were considered too "noisy" and complex to be probed by science. But now, with the aid of high-speed computers, scientists have been able to penetrate a reality that is changing the way we perceive the universe. Their findings -- the basis for chaos theory -- represent one of the most exciting scientific pursuits of our time.
No better introduction to this find could be found than John Briggs and F. David Peat's Turbulent Mirror. Together, they explore the many faces of chaos and reveal how its law direct most of the processes of everyday life and how it appears that everything in the universe is interconnected -- discovering an "emerging science of wholeness."
Turbulent Mirror introduces us to the scientists involved in study this endlessly strange field; to the theories that are turning our perception of the world on its head; and to the discoveries in mathematics, biology, and physics that are heralding a revolution more profound than the one responsible for producing the atomic bomb. With practical applications ranging from the control of traffic flow and the development of artifical intelligence to the treatment of heart attacks and schizophrenia, chaos promises to be an increasingly rewarding area of inquiry -- of interest to everyone.
My purpose to get the above knowledge is just in order to find the hidden order of financial market, and, of course, to make profit from the market. That's why I find this book is good to serve my purpose. It explained clearly on fractals, the relationship between chaos and order, and non-linearness.
I knew E. Peters has using fratals / Elloit Wave Theory to analyze financial market. Of course, it needs more intra-day data to try to find such fratals in a small scale period, e.g. in a 5-minute charts. But I guess that, such fractal are existing in the market, if you watching index movement everyday.
On another aspest, the technique of plotting data in a phase space is a tool to get the picture of financial market to me. This tools can be compared with weighted moving average, MACD, or other technical indicators. Though, phase space analysis is quite uneasy to a man without advanced mathematics. I'm quite sure such mathematical technique may apply to financial trading.
Besides, the idea of "quasi-periodic" is likely describing financial market. Though I got less knowledge from the book on this topic. It sounds like some ideas from William Gann, and other cyclist writings.
Hince, I'm benefitted from the book to enlighten new view point to see the world, and the market. I recommend any financial market practitioner to read this Chaos Theory guild and then reread some technical analysis classics, and reviewing their trading strategies. I believe that shall be worthy in one's trading life.
N.B. The picture 2.7 is missing (P.76), and there is some printing errors in its Chinese version which printed in 20.6.1997
