Identification through technical analysis: A study of charting and UK non-professional investors

Abstract

Bradford Scholars -how to deposit your paper Overview Copyright check• Check if your publisher allows submission to a repository.• Use the Sherpa RoMEO database if you are not sure about your publisher's position or email openaccess@bradford.ac.uk.

‘No one to trust’: the cultural embedding of atomism in financial markets

“…Identifying the market moves of these ‘institutionals’ on the charts primarily relies on ‘technical‐analysis’ (aka ‘chartism’): a geometrical analysis of price and volume charts (Preda ; Mayall ; Roscoe and Howorth ). Used as an alternative or addition to the slower, ‘fundamental’ analysis of financial assets, technical‐analysis in its popular version tends to look at the shape of charts as an outcome and an initiator of socio‐psychological trends in the market (Ailon ).…”

Trading on Noise: Moving Average Trading Heuristics and Private Investors

“…In particular, studies usually consider each and every trading signal of the strategy under investigation (Day and Wang, 2002), although in practice investors likely supplement the information derived from technical analysis with other data or personal market intuition (Menkhoff and Taylor, 2007). The typical investor will conceive technical analysis as a tool that requires an active selection and interpretation of emanating trading signals (Roscoe and Howorth, 2009). Any abnormal returns from technical trading may therefore stem from that kind of selection and 1 Commercial interest in technical analysis is substantial and includes magazines, newsletters, reports published by brokerage firms, websites, and commercial software packages.…”

‘Elephants can’t gallop’: performativity, knowledge and power in the market for lay-investing

“…The nonprofessional investor acts within a market-world that only makes sense to an outsider in the light of the relevant market(ing) knowledge: it illuminates and explains their actions. At the same time, the marketing knowledge captures and binds the investor to an investment service provider, through a discourse of possibility and change, through bodily affect and a carefully staged resistance to professional finance, and through the elaboration of divisions between different kinds of investor, so that being a follower of, for example, Elliott and Pivot at the same time would mean holding on to almost contradictory sets of belief about the way the market works (Roscoe & Howorth, 2009). Attachments are developed through specialised knowledge, embedded in proprietary tools, through the deployment of symbolic expertise by the celebrities of the investment service world, and through the emotional and intellectual commitments -the affects -that must be made by individual investors.…”

“…Preda (2006) shows how lay-investment was initially coordinated by the tickertape and has charted the development of technical analysis as a consequence of the relationship. Roscoe and Howorth (2009) (Roscoe & Howorth, 2009)show how different conceptions of market order, such as the existence of trends, or hidden patterns and numbers, necessitate different calculative strategies when investing. Investment methods are also influenced by investment discourses, which display a remarkable consistency around the globe, whether in the US (Harrington, 2007), Australia (Mayall, 2006) or Taiwan (Chen, 2013).…”