In some cases, these gaps may fill if there is insufficient buying pressure to push the stock price past its previous highs. Exhaustion gaps occur at the end of a strong price move as volume fades. These gaps typically fill
Read moreTrading Psychology: Definition, Examples, Importance in Investing
Emotional biases are deviations from rationality arising from feelings, moods, perceptions, or beliefs. These include herding behavior, loss aversion bias and the emotional impacts of fear and greed, among others. Both categories of biases can result in irrational judgements and
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