Do you remember the first time you heard the sure-fire advice to "buy low and sell high"?
Well, researchers at the University of Warwick discovered a way to detect precisely when ordered patterns form in everything from plasma in the solar wind and fusion reactors, to crowds of people, to flocks of birds. And the technique can be used to find unusual patterns in stock market prices.
They analyzed when complex systems move suddenly from chaos to order using an information technology tool called mutual information that can detect patterns and correlations from a very small set of points, as few as ten within a large system. Their analysis had one-fourth the error rate of traditional statistical methods.
I guess all stock market traders have to do now is buy chaos and sell order.