Herding Another related explanation used in behavioral finance lies in herd behavior, the fact that investors tend to buy or sell in the direction of the market trend. This is sometimes helped by technical analysis that tries precisely to detect those trends and follow them, which creates a self-fulfilling prophecy.
herding another related explanation used in behavioral finance lies in herd behavior the fact that investors tend to buy or sell in the direction of the market trend this is sometimes helped by technical analysis that tries precisely to detect those trends and follow them which creates a self-fulfilling prophecy