Defining Chaos Logic

July 8th, 2021

In his recent webinar ‘Structure and Logic for E-Mini Intraday Chaos Theory’, DMIC2059 founder Alan Fitterman explained that ‘Chaos Logic’ is when “dynamic systems whose apparently random states of disorder and irregularities are actually governed by underlying patterns and deterministic laws that are sensitive to initial conditions.”

Examples of chaos logic can be found throughout nature – for example, while listening to an irregular heartbeat or when predicting the weather. The seemingly random patterns found in these systems are actually predicated on small variances in their initial circumstances.

So how does this apply to futures trading? Fitterman says that “the intraday futures markets have artificial components that need a multi-dimensional approach to understand the fractals within each day”. He believes that you can use this kind of logic to predict where key reversals are likely and to recognize time momentum and price momentum throughout the day.

If you are interested in learning more about how Fitterman applies chaos logic to futures trading, be sure to check out the full webinar here.

If you enjoyed this clip, be sure to watch these other videos: Basic VWAP Logic and Using Key Structure and Logic for E-Mini Analysis!

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