This makes the long-term evolution of the system impossible, in principle, to predict. The practical difficulties are the limits of computer power. Even with the help of calculators and desktop computers, the long-term calculations were too lengthy. The conclusion from all this is that while new real-life chaos discoveries are being made, current computing technology cannot keep up with the pace. According to respected authorities, stock markets are non-linear, dynamic systems.
Chaos theory is the mathematics of studying such non-linear, dynamic systems.
Chaos analysis has determined that market prices are highly random, but with a trend. The amount of the trend varies from market to market and from time frame to time frame. A concept involved in chaotic systems is fractals. A popular example of this is a tree. While the branches get smaller and smaller each is similar in structure to the larger branches and the tree as a whole.