@article {5767,
	title = {The role of need for structure in technical analysis and how identifying information in price movements raises traders{\textquoteright} confidence},
	journal = {Decyzje},
	year = {2020},
	month = {08/2020},
	pages = {75-96},
	abstract = {Technical analysis (TA) is a tool believed to support investor{\textquoteright}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.},
	issn = {1733-0092},
	doi = {10.7206/DEC.1733-0092.141}
}
