What The Heart Rate Of A Dying Patient Tells Us About The Health Of The Market…Hint: It’s not good
Ashvin Pandurangi, Simple Planet
Recently, there has been much research into the chaotic dynamics of complex systems in many different fields.
Complexity theory provides great analytical insights into the structures of “hard” sciences such as biology and also social sciences such as economics. It can even reveal dyamic properties that will serve as predictive indicators across both of the two fields (and perhaps many others). It should be noted that “predictive” doesn’t necessarily mean a specific result will always follow, but that it becomes significantly more likely to occur.
The following article will explore a relatively simple indicator which identifies high probabilities of instability in both the human circulatory system (specifically cardiac) and financial markets. Let’s start this discussion with a short quiz. Take a look at the following four graphs of heartbeats per minute over a 30-minute interval, and see if you can guess which one(s) belongs to a healthy patient and which one belongs to a patient facing sudden cardiac death: