flâneur

What technical analysis biases are you making?

linkedin.com · 3,467 words · saved by 1 readers

Confirmation bias is the tendency to seek, interpret, and favor information that confirms your existing beliefs or hypotheses, while ignoring or rejecting evidence that contradicts them. For example, if you are bullish on a certain asset, you might focus on the positive indicators, patterns, and trends that support your view, and disregard the negative ones that challenge it. Confirmation bias can lead you to miss important signals, overestimate your accuracy, and hold on to losing trades. To reduce confirmation bias, you should always test your assumptions, use multiple sources of data, and seek feedback from others. Associate Director at UBS | CMSA® | SAFe® 6.0 CSM Having a trading partner always helps in such cases. You can always get your view reviewed from him/her to get different perspective. Sharing a view/analysis with a trading partner always helps to avoid confirmation bias. Help improve contributions Mark contributions as unhelpful if you find them irrelevant or not valuab

All Financial Management Technical Analysis What technical analysis biases are you making? Powered by AI and the LinkedIn community 1 Confirmation bias 2 Recency bias 3 Anchoring bias 4 Hindsight bias 5 Gambler's fallacy 6 Here’s what else to consider Technical analysis is a popular method of analyzing and forecasting the price movements of financial assets, such as stocks, forex, and futures. However, technical analysis is not a flawless science, and it can be prone to various biases that can affect your trading decisions and performance. In this article, we will explore some of the common te

saved by

related reading