Finish reading Chaos Hits Wall Street (if you haven’t yet!).
Also, create a diagram showing the relationship between the following variables for a “damped” pendulum (a pendulum that slows down over time)
- Y-position as a function of x-position
- Y-position as a function of time
- X-velocity as a function of time
- X-velocity as a function of x-position
For a more modern take on Chaos Theory in the financial investment industry, check out this 2010 blog post from MoneyMorning.com: What We Can Learn from the Stock Market Genius That Wall Street Loves to Ignore.
Keep in mind, however, that this “technical analysis” approach is not without its detractors. For a counterpoint, see this bluntly-titled post from The Motley Fool, also from 2010: Technical Analysis is Stupid