Tag Archives: selective perception
Good out-of-sample results of a unique hypothesis may impress me but not naive statistics that demonstrate selective perception bias. Here is a recent example.
Selective perception is common in market analysis and a leading cause of bias. If one looks at charts with an open mind, there are often conflicting signals. Head and shoulders traders in SPY were reminded of this market reality last … Continue reading
Focusing on what is perceived as important is the cardinal mistake of most technical analysts. Normally what is overlooked may be equally or even more important. Usually what is more important is very hard or impossible to see.