Chaotic dynamics applied to financial market modeling
The Lorenz system (σ, ρ, β parameters) models financial dynamics: x = excess demand, y = market momentum, z = speculative bubble pressure. The "price" signal is projected from x(t). Lyapunov exponent λ₁ ≈ 0.9 (for standard params) → 1/λ₁ ≈ 1.1 time units of predictability horizon.