3803719: Behavioral finance and technical analysis

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Semester:WS 14/15
Scheduled in semester:1
Semester Hours per Week / Contact Hours:12.0 L / 9.0 h
Self-directed study time:51.0 h

Module coordination/Lecturers


Master's degree programme in Banking and Financial Management (01.10.2008)


Behavioral Finance (Schiereck)

  • Critique of the Expected Utility Theory
  • Prospect Theory
  • Kinds and Consequences of Heuristic Distortion
  • Framing

Technical Analysis (Jasper)
Part 1:
  • Philosophy of technical analysis / Dow Theory
  • Types of charts
  • Classical chart formations (Theory and practical examples)
  • Oscillators (including Price, volume and open interest)

Part 2:
  • Fibonacci / Elliott Waves
  • Ichimoku Charting
  • DeMark Indicators

Part 3 (depending on time):
  • Socionomics
  • News trading

Learning Outcomes

  • Critically scrutinising decision theory fundamentals in finance
  • Considering psychological aspects in investment decisions
  • Explaining momentum und rebound strategies
  • Defining technical indicators
  • Evaluating and applying technical analysis instruments
  • Understanding the connection between alternative techniques: fundamental, technical and sentiment


Lectures Method

Interactive lecture with exercises


Required reading:

  • Brown, L.D. (1993). Earnings Forecasting Research: its implications for Capital Markets Research. International Journal of Forecasting, Vol 9, pp. 295-320.
  • De Bondt, W.F. M. /Thaler, R.H. (1990). Do Security Analysts Overreact? American Economic Review, American Economic Association, Vol 80 (2), pp. 52-57.
  • De Bondt, W.F.M. /Forbes, W.H. (1999). Herding in Analysts Earnings Forecasts. In: European Financial Management, Vol. 5, pp. 143-163.
  • Kahnemann, D. /Tverky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. In Econometrica. Vol. 47. No. 2. pp. 263-292.
  • Odean, T. (1998). Are Investors Reluctant to Realize Their Losses? Journal of Finance. American Finance Association. Vol. 53 (5). pp. 1775-1798.

  • Murphy, J. (1999). Technical Analysis of the Financial Markets. New York Institute of Finance


Lecture slides, exercises, sample questions will be available on Moodle

Exam Modalities

  • Written examination with 120 minutes editing time (30 minutes dedicated to knowledge acquired during this lecture)
  • Obligatory class participation


30.10.201409:00 - 16:30S4
31.10.201409:00 - 12:15abgesagt/cancelled
13.12.201413:00 - 16:30H4