The European Journal of Finance 11(3), pp. 207-222.
ISSN/ISBN: Not available at this time. DOI: 10.1080/1351847042000254194
Abstract: Confluence occurs when different trading filters generate signals that point to the same directional move. Using regression analysis, this paper investigates confluence trading signals associated with number preference and price exhaustion, for a sample of Australian stocks. The results show that certain price levels tend to act as psychological barriers, and that price exhaustion signals are a real phenomenon in the Australian stock market. It is shown also that confluence exists in the Australian stock market. Importantly, confluence is associated with price retracements that are of economic and statistical significance, offering profitable trading opportunities. The results suggest that Australian stocks do not follow a random walk.
Bibtex:
@article{,
author = {Christos Doucouliagos },
title = {Price exhaustion and number preference: time and price confluence in Australian stock prices},
journal = {The European Journal of Finance},
volume = {11},
number = {3},
pages = {207--221},
year = {2005},
publisher = {Routledge},
doi = {10.1080/1351847042000254194},
URL = { https://www.tandfonline.com/doi/abs/10.1080/1351847042000254194
}
Reference Type: Journal Article
Subject Area(s): Economics