Gambler's Fallacy in Trading: Why Streaks Feel Due to End
Why after five red candles a bounce feels due: the gambler's fallacy and the hot-hand belief in the Rabin and Vayanos model, with the coin-flip data.
#momentum
3 articles
Does Trend Following Work? Evidence From 58 Futures
A past 12-month return predicted the next month in every one of 58 futures. What the study found, what it assumed, and what it did not test.
Crypto Momentum and Attention: What a Top Journal Found
Liu and Tsyvinski (Review of Financial Studies): bitcoin returns show time-series momentum and respond to attention. Numbers, sample and limits.