James Montier, in his work “Behavioural Investing: A Practitioner’s Guide to Applying Behavioural Finance,” sheds light on the pitfalls of group decision-making in trading. While it’s often hoped that groups…
Risk management can be about complex formulas and rules, but it can also just be a matter of common sense. While various techniques and measures can reduce risk in both…
Finding a good trading system is a worthwhile pursuit, but how do you know when you have found one? What should your benchmark be? In the Chartered Market’s Technician’s level…
Candlestick patterns can be traced back to the 18th century when a Japanese rice trader named Munehisa Homma developed a system of charting that used candlestick patterns to track the…
Sunk cost bias is a cognitive bias that influences decision-making by placing undue emphasis on the resources (time, money, effort) already invested in a particular endeavor, even when those investments…
Prospect Theory is a behavioral economic theory developed by Daniel Kahneman and Amos Tversky in the 1970s. It is explained in the Chartered Market Technicians curriculum for level 2. The…
The Commitments of Traders report (COT), is a weekly report published by the U.S. Commodity Futures Trading Commission (CFTC). The COT report is based on data collected from the futures…
The rising window, or simply a gap, represents a bullish price pattern. It occurs when the price opens significantly higher than the previous day’s close, leaving a gap on the…
Another name for a falling window in technical analysis is a gap. This is a place on a chart where the price has literally ‘gapped’ over an area on the…
Short interest is the selling of a security that the seller does not own. It can be strange to think about how to sell something that you don’t own, however,…