Quote from RangeTrader:
You guys should take a class in chaos theory. It's very interesting stuff. We have discovered that there is no such thing as "random chaos." Things that we think of as chaos... Crowd movement, traffic patterns on highways, and etc...
All things we use to think were chaotic and random actually organize themselves into somewhat predictable patterns based upon the math of chaos. Everything is cycles and patterns... Trees grow in fractal patterns. Water flows in patterns that obey the rules of chaos theory. Predictability drops off the farther into the future you go because of the butterfly effect.
If you have ever been surfing and have a good instinct you can just sense and feel when the good waves are coming by your ability to recognize the pattern. Some people are in sync with cycles and some people are not. It's kind of funny... When I was surfing in Hawaii the Hawaiians complimented me on my ability to feel the water and recognize when the big waves were coming farther ahead than most other people.
Go surfing sometime. If you can't get a feel for the waves after a couple years you probably won't be able to get a feel for the stock market.
I can just take a glance at the ES and I instantly know what the trend is, the odds of the market making moves to different levels, possible retracement buy levels, and etc. But, if I glance at a forex chart I cannot make heads or tails of it. To understand forex I would have to watch it for a long time.
