Publikacja:

The role of need for structure in technical analysis and how identifying information in price movements raises traders’ confidence

Data

2020
Artykuł
Przeszukaj czasopismo Uproszczony widok Pełne metadane Statystyki
 
cris.legacyid5767
cris.virtual.journalance#PLACEHOLDER_PARENT_METADATA_VALUE#
cris.virtualsource.journalancec5e604c2-f6bd-4f19-914c-e01c8ff3c6c3
dc.abstract.plTechnical analysis (TA) is a tool believed to support investor’s investment decisions. Even if research has demonstrated that TA cannot be used to make systematic profits over a long time period, it could potentially bring psychological payoffs to its users in the form of enhancing their confidence. In an experimental study we show that: (1) chartists demonstrate overconfidence in TA usage, believing that they are better than they actually are in TA formation recognition, and that; (2) the act of naming an observed trend as a TA formation brings extra confidence to the chartist, regardless of whether this is a real TA sequence or a random sequence. Thus, both naming an existing TA formation as a TA formation and naming a random sequence as a TA formation result in greater confidence. Also, irrespective of the high popularity of TA among investors, there are marked individual differences in TA followers. In a questionnaire study, we demonstrate that declared positive attitudes toward TA correlate positively with high need for (cognitive) closure (as measured by the Need for Cognitive Closure Scale; NFCS), specifically, desire for predictability.
dc.contributor.affiliationKozminski University
dc.contributor.affiliationCracow University of Economics
dc.contributor.affiliationCracow University of Economics
dc.contributor.authorŁukasz Markiewicz
dc.contributor.authorMarcin Czupryna
dc.contributor.authorElżbieta Kubińska
dc.date.accessioned2025-07-28T14:24:33Z
dc.date.available2025-07-28T14:24:33Z
dc.date.issued2020
dc.date.published08/2020
dc.description.issue33
dc.description.physical75-96
dc.identifier.doi10.7206/DEC.1733-0092.141
dc.identifier.issn1733-0092
dc.identifier.urihttps://repozytorium.kozminski.edu.pl/handle/item/3612
dc.languageen
dc.relation.ispartofCollective and Individual Decisions
dc.relation.pages75-96
dc.rightsCC-BY-4.0
dc.subjecttechnical analysis
dc.subjectchartists
dc.subjectoverconfidence
dc.subjectconfidence
dc.subjectdubious data
dc.subjectcognitive closure
dc.subtypeOriginal
dc.title

The role of need for structure in technical analysis and how identifying information in price movements raises traders’ confidence

dc.typeArticle
dspace.entity.typePublication