Technical analysis, investment psychology, and liquidity provision: Evidence from the taiwan stock market
Journal
Emerging Markets Finance and Trade
Journal Volume
46
Journal Issue
5
Pages
18-38
Date Issued
2010
Author(s)
Abstract
We set out to empirically identify the effects on technical signals attributable to psychological biases, adopting a set of specific liquidity provision proxies for a sample of firms listed on the Taiwan Stock Exchange. The main findings of our empirical analysis are that the "disposition," "information cascade," and "anchoring" effects each have significant impacts on trading signals. Our results should help to shed further light on the asymmetric market responses to technical buy and sell signals, while also providing some potential clarification of the different attitudes of traders toward big-cap and small-cap firms.
SDGs
Type
journal article