Clustering and psychological barriers: the importance of numbers

By Jason D. Mitchell. 2001

118 citations recorded by the source corpus.

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Currency Orders and Exchange Rate Dynamics: An Explanation for the Predictive Success of Technical Analysis (2003, background): “As early as 1927, Yule identified a "human tendency to select and identify with round numbers (0s), halves (5s), quarters, and even numbers" (Mitchell (2001), p. 408); Yule implies that this tendency derives from deeper in the human psyche than a cognitive cost-benefit analysis.”
Psychological Barriers in Gold Prices (2007, background): “Other research (Mitchell, 2001) draws a distinction between psychological barriers and clustering phenomena and distinguishes clustering, where particular digits and levels appear more often, from psychological barriers, where trades are infrequent at or around a particular cluster of prices.”
Price Clustering and Natural Resistance Points in the Dutch Stock Market (2003, unknown): “Niederhoffer (1966) and Harris (1991) show that price clustering also exist on the level of round numbers (multiples of 5).”