Behavioural Technical Analysis

An Introduction to Behavioural Finance and Its Role in Technical AnalysisWhat happens when human emotions and financial markets collide — and how to profit from itMarkets are fuelled by sentiment — the collective psychology of the market participants. Behavioural finance is an exciting new field which uses techniques from several disciplines, including psychology, economics and statistics, to study how human sentiment and emotions affect financial decision-making and is revolutionising investment and trading.In particular, it's becoming clear that behavioural finance can help shine new light on various aspects of technical analysis — and this is the unique focus of the book. The mutual pollination of behavioural finance and technical analysis, which the author calls behavioural technical analysis, can also lead to profitable new trading techniques. In the book, the author demonstrates the application of behavioural finance concepts to three popular analysis strategies commonly used by traders:Trading price extremes,Trading trends, andTrading support and resistance.This important book reveals how behavioural finance offers a more refined understanding of technical price patterns and how it can serve as an important foundation for profitable new trading techniques and strategies.