| Title |
Memory effects in stock price dynamics: evidences of technical trading
|
|---|---|
| Published in |
Scientific Reports, March 2014
|
| DOI | 10.1038/srep04487 |
| Pubmed ID | |
| Authors |
Federico Garzarelli, Matthieu Cristelli, Gabriele Pompa, Andrea Zaccaria, Luciano Pietronero |
| Abstract |
Technical trading represents a class of investment strategies for Financial Markets based on the analysis of trends and recurrent patterns in price time series. According standard economical theories these strategies should not be used because they cannot be profitable. On the contrary, it is well-known that technical traders exist and operate on different time scales. In this paper we investigate if technical trading produces detectable signals in price time series and if some kind of memory effects are introduced in the price dynamics. In particular, we focus on a specific figure called supports and resistances. We first develop a criterion to detect the potential values of supports and resistances. Then we show that memory effects in the price dynamics are associated to these selected values. In fact we show that prices more likely re-bounce than cross these values. Such an effect is a quantitative evidence of the so-called self-fulfilling prophecy, that is the self-reinforcement of agents' belief and sentiment about future stock prices' behavior. |
X Demographics
The data shown below were collected from the profiles of 7 X users who shared this research output. Click here to find out more about how the information was compiled.
Geographical breakdown
| Country | Count | As % |
|---|---|---|
| United Kingdom | 1 | 14% |
| Canada | 1 | 14% |
| Italy | 1 | 14% |
| France | 1 | 14% |
| Unknown | 3 | 43% |
Demographic breakdown
| Type | Count | As % |
|---|---|---|
| Members of the public | 6 | 86% |
| Scientists | 1 | 14% |
Mendeley readers
The data shown below were compiled from readership statistics for 74 Mendeley readers of this research output. Click here to see the associated Mendeley record.
Geographical breakdown
| Country | Count | As % |
|---|---|---|
| United Kingdom | 1 | 1% |
| Japan | 1 | 1% |
| Italy | 1 | 1% |
| Unknown | 71 | 96% |
Demographic breakdown
| Readers by professional status | Count | As % |
|---|---|---|
| Student > Ph. D. Student | 14 | 19% |
| Researcher | 12 | 16% |
| Other | 7 | 9% |
| Student > Master | 7 | 9% |
| Student > Doctoral Student | 6 | 8% |
| Other | 15 | 20% |
| Unknown | 13 | 18% |
| Readers by discipline | Count | As % |
|---|---|---|
| Economics, Econometrics and Finance | 14 | 19% |
| Business, Management and Accounting | 13 | 18% |
| Physics and Astronomy | 8 | 11% |
| Mathematics | 7 | 9% |
| Computer Science | 6 | 8% |
| Other | 9 | 12% |
| Unknown | 17 | 23% |
Attention Score in Context
This research output has an Altmetric Attention Score of 6. This is our high-level measure of the quality and quantity of online attention that it has received. This Attention Score, as well as the ranking and number of research outputs shown below, was calculated when the research output was last mentioned on 08 September 2023.
All research outputs
#6,521,817
of 26,017,215 outputs
Outputs from Scientific Reports
#44,130
of 142,961 outputs
Outputs of similar age
#57,237
of 242,260 outputs
Outputs of similar age from Scientific Reports
#193
of 721 outputs
Altmetric has tracked 26,017,215 research outputs across all sources so far. This one has received more attention than most of these and is in the 74th percentile.
So far Altmetric has tracked 142,961 research outputs from this source. They typically receive a lot more attention than average, with a mean Attention Score of 18.8. This one has gotten more attention than average, scoring higher than 68% of its peers.
Older research outputs will score higher simply because they've had more time to accumulate mentions. To account for age we can compare this Altmetric Attention Score to the 242,260 tracked outputs that were published within six weeks on either side of this one in any source. This one has done well, scoring higher than 76% of its contemporaries.
We're also able to compare this research output to 721 others from the same source and published within six weeks on either side of this one. This one has gotten more attention than average, scoring higher than 73% of its contemporaries.