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The Risks of Pareidolia in Stock Market Trading

Equities & Market Mechanics

Definition

Pareidolia refers to the human tendency to perceive patterns where, in fact, there is only randomness. This may sound like a complex phenomenon, but if you’ve ever marveled at the man in the moon or distinguished the face of a horse and buggy in a passing cumulus cloud, then you are already familiar with the process of interpreting significance where, in fact, there is none. These instances of par

In Panel Profits

In the Panel Profits market platform, The Risks of Pareidolia in Stock Market Trading applies standard equities & market mechanics principles to comic assets and physical collections. Trading volume and liquidity spreads reflect secondary market dealer and auction transactions.

Common mistakes

Do not infer unobserved prices.