This branch of science deals with complex systems that may initially appear random but actually have a degree of regularity or predictability. Weather and financial market patterns are often cited as prime examples of chaotic systems.
An important aspect of chaotic behavior with regard to market behavior is the concept of the “fractal,” which refers to properties of self-similarity — e.g., the formation of comparable patterns on different time frames, such as intraday price behavior vs. daily or weekly price behavior. Another key concept is sensitivity to initial conditions, which means a small event now can have a large impact later (the so-called “butterfly effect,” the analogy that a butterfly flapping its wings on one side of the planet can be related to the development of a storm on the other side of the planet).
http://dmoz.org/Science/Math/Chaos_and_Fractals/Chaos/
A list of chaos and fractal Web sites collected by the Open Directory Project.
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