AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO:

• Demonstrate how the principles of behavioral finance can explain anomalies in stock market returns.
• Identify reasons why technical analysis may be profitable.
• Use the Dow theory to identify situations that technicians would characterize as buy or sell opportunities.
• Use indicators such as volume, put/call ratios, breadth, short interest, or confidence indexes to measure the "technical conditions" of the market.