Chaos Theory  |  NOV 2003

Finding Out About Fractals by Clem Chambers

Finding Out About Fractals by Clem Chambers How are fractals related to the financial markets? Fractals hold a powerful mystique, but few truly understand what a fractal is and how it relates to the market. To most, a fractal is a fantastically beautiful graph with curly edges that seems to have a hypnotic grip on the viewer. Expressed as images, fractals have an almost-magical charm, while the word itself, coined and popularized by scientist and mathematician Benoit Mandelbrot, has taken on an almost incantation-like property, as though it were a synonym for “abracadabra.” You don’t have to look far to find “fractal” used in ways that have no relation to the original meaning. Buzzword builders have purloined this revolutionary mathematical concept, leaving most of us confused about what it really means.

by Clem Chambers