Title

A Turning Point Method For Measuring Investor Sentiment

Keywords

Investor sentiment; Technical analysis; Turning points; Volatility

Abstract

Technical analysis has always been a controversial topic with weak evidence in the literature while behavioral finance has enjoyed success. Yet the objective of technical analysis is to measure investors' behavior, implying the need to reexamine the study of technical methods. This study begins to close the gap in evidence between behavioral finance and technical analysis by developing an objective turning point methodology to infer unobservable investor sentiment. Using Parkinson's [1980] estimate of volatility, the findings indicate that the turning point method not only captures investor sentiment effectively, but more effectively than traditional time-static methods. © 2014 © The Institute of Behavioral Finance.

Publication Date

1-1-2014

Publication Title

Journal of Behavioral Finance

Volume

15

Issue

1

Number of Pages

30-42

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1080/15427560.2014.877464

Socpus ID

84897768584 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/84897768584

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