This thread is going to be about the application of Chaos theory in the Forex Markets.

Background information is going to be provided ad-nauseum.

"The length of a coastline is not a measurable quantity in the Euclidean approach to measurement. If Florida had a smooth Euclidean shape, there would be a fixed answer to the question of its length. But Virtually all natural shapes are irregular. They defy absolute values of traditional measurement.

Mandelbrot invented a new way of measuring such irregular natural ­object­s or natural systems. he named it the fractal or more properly, the fractal dimension. The fractional dimension is the degree of roughness or irregularity of a structure or system. Mandelbrot found that the fractional dimension remains constant over different degrees of magnification of an irregular ­object­. In other words, there is regularity in all irregularity. When we normally refer to an occurrence as random, we indicate that we don't understand the structure of that randomness. In market terms, this means that the same pattern formation should exist in different time ­frame­s. A one-minute chart will contain the same fractal pattern as a monthly chart. This "self-similarity" fond in commodity and stock charts gives further indication that market action is more closely attuned to the paradigm of "natural" behavior rather than economic, fundamental, mechanical or technical behavior. " - Bill Williams