Technical Analysis Assignment

1. What are several human traits that tend to affect investment decisions?

2. Why do the supporters of behavioral finance suggest that emotions lead to inferior investment decisions?

3. What is the purpose of technical analysis, and why are those who use technical analysis referred to as chartists?

4. What changes produce a sell signal in the Dow Theory and Barron’s confidence index?

5. What is a moving average? What is the significance when a stock’s price crosses a moving average of the stock’s price?

6. What is the problem with time lags in technical analysis and why may the analysis lead to self-fulfilling predictions?

7. What is the difference between “support” and “resistance” in technical analysis?

8. Why does technical analysis receive little support from academically oriented students of investments?