“Chaos” theory of Bill Williams

Posted on June 18th, 2008 by admin, under online forex trading.

“Chaos” theory of Bill Williams

“Chaos” theory of Bill Williams, is one of the most famous and controversial theories of modern trading. According to this theory, there is an enormous amount of diametrically opposing views.

Briefly, the theoretical base of “Chaos Theory” is following: despite the fact that each movement of price is a random and chaotic (microscopic parameters are casual), the overall change in the system has a predictable elements.

It can be confirmed by examples from life: the definition of half-life of nucleus (with the full uncertainty of time of decay of each nucleus individually), the notion of change of temperature (when change of speed of each particle is unknown), or changes in pressure (when the number of particles, which impact on the wall in unknown and uncertain).