ADMS 3531 Chapter Notes - Chapter 10: Technical Indicator, Dow Theory, Market Sentiment
12 Aug 2020
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Document Summary
Dow theory framed fundamental risk memory bias mental accounting moving average odd-lot theory. A set of theoretical hypotheses that attribute departures from market efficiency to systematic patterns of investor behaviour that seemingly contradict rationality. A technical indicator measuring the extent to which movement in a market index is reflected in the price movements of all stocks. The ratio of the average yield on ten top-rated corporate bonds divided by the average yield on ten intermediate-grade corporate bonds; a technical indicator that is bullish when the index approaches 100 percent, implying low-risk premiums. A decision-making bias by which investors are too slow in updating their beliefs in response to new evidence. Refers to the tendency of investors to hold on to losing investments, with hopes of recovery. A long-standing approach to forecasting stock market direction by identification of long-term trends; the dow jones industrial and. Transportation averages were used by charles dow to identify and confirm underlying trends.
