Scribner Seminar Program
Course Description
Psyching Out the Stock Market
Instructor(s): Pierre von Kaenel, Math and Computer Science
The financial markets are a “mind game.” Want to psych out other players? Human psychology
plays a large role in determining prices in the markets. Traders and investors are
influenced by government policies, business and economic conditions, politics and
the human drama that unfolds each day in the business world. But what are the telltale
signs that show how traders are reacting to these news events? Can these signs predict
future price swings? Students will explore the use of technical analysis to study
financial markets by examining patterns of daily, weekly, and monthly price ranges
and volume when charted. They will see how other indicators based on price and volume
are often used to confirm trends or to indicate divergences. To explore the effects
of trading psychology and other forces on the markets, technical analysts rely on
a collection of tools such as mathematical formulas to calculate indicators, software
tools to perform calculations and display charts, intermarket relationships to predict
how markets impact one another, and numerous other methodologies to predict future
price trends. Students will explore these tools and determine how effective they are
at predicting price trends.