Number preference in Australian stocks

Doucouliagos, Chris 2004, Number preference in Australian stocks, Applied Financial Economics, vol. 14, no. 1, pp. 43-54.

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Title Number preference in Australian stocks
Author(s) Doucouliagos, Chris
Journal name Applied Financial Economics
Volume number 14
Issue number 1
Start page 43
End page 54
Publisher Routledge Taylor
Place of publication Milton Park, U.K.
Publication date 2004-01
ISSN 0960-3107
1466-4305
Summary Stock price rallies/declines often terminate at price levels that are interpreted by many as areas of psychological resistance or support, while an alternative interpretation is that they coincide with price clusters. Some of these price levels tend to repeat with a regularity that is inconsistent with mere chance. In this paper, the existence of price clusters and psychological barriers is tested on a sample of 20 Australian stocks. We consider two number sequences, both derived from a base number of 100, as well as integer price levels. It is shown that Australian stock price data are not uniformly distributed and that for the majority of the stocks, price swing highs and lows are associated with certain recurring price levels. Some of the implications for trading and investing are considered.
Language eng
Field of Research 140299 Applied Economics not elsewhere classified
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2004, Routledge Taylor
Persistent URL http://hdl.handle.net/10536/DRO/DU:30002342

Document type: Journal Article
Collection: School of Accounting, Economics and Finance
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