Learning to trade is not easy. It is a very difficult undertaking which may take several years to master. With that said, let us proceed to the topic of chaos in markets. The essential essence of chaos is balance. Any system which has more than one solution is chaotic.
Markets are provably chaotic.
There are mathematical tests which can test for the chaotic behavior of markets. These tests prove that chaotic behavior exists in all freely traded markets. Let us examine the importance of balance in the behavior of chaotic systems. Figure 1 shows two bowls that have been positioned with the rims touching each other. Assume that the rims of these bowls are razor sharp.