behavioral-finance

Behavioral finance signals are generated by translating overreaction, underreaction, and sentiment extremes into measurable metrics like RSI triggers, disposition-effect ratios, and attention-weighted momentum rules for actionable trades.

Detect sentiment extremes by combining turnover, margin financing, limit-up counts, fund discounts, and disposition-effect ratios into composite scores with warning thresholds to identify euphoric or panicking market conditions.

Avoid momentum traps by applying bias-aware signal generation that uses attention-weighted momentum, sentiment-versus-fundamental screening, and cross-sectional confirmation to identify contrarian entries when cognitive biases peak.

Disposition-effect ratios are combined with sentiment indicators and composite scoring to guide entry timing, position sizing, and exposure control by detecting when investors are euphoric or panicking.

Behavioral finance momentum strategies use attention-weighted momentum and time-series confirmation to dynamically shorten or extend holding periods based on underreaction and overreaction reversal patterns.

Contrarian entries based on sentiment diagnostics should be avoided when composite scores fail to reach established warning thresholds, indicating that cognitive biases have not peaked sufficiently to trigger reversal patterns.