the hAndbook of technIcAl AnAlysIs
- Explain prospect theory and how it affects market action.
- Explain how loss aversion bias can lead to sunk cost bias.
- Describe how regret bias influences market action.
- Why do chart patt erns exist?
- How do market specialists take advantage of knowledge‐based bias in the
markets?
- Explain why positive feedback cycles are responsible for the formation of tops
and bottoms in the market.
reFerenCes
Montier, James. 2007. Behavioural Investing: A Practitioners Guide to Applying Behav-
ioural Finance. Chichester, England: John Wiley & Sons.
Plummer, Tony. 2009. Forecasting Financial Markets. Hampshire, England: Harriman
House Ltd.
Shefrin, Hersh. 2002. Beyond Fear and Greed. New York: Oxford University Press.
Shiller, Robert J. 2005. Irrational Exuberance. Princeton, NJ: Princeton University.
Soros, Georgy. 2003. The Alchemy of Finance. Hoboken, NJ: Wiley Investment Classics.
