Title: Identifying noise traders
Description: "This paper identifies a specific set of agents as noise traders in U.S. equity markets, and examines their effects on returns.  These agents, who speculate using the "head-and-shoulders" chart pattern, are shown to qualify as noise traders because (1) trading volume is exceptionally high when they are active, and (2) their trading is unprofitable.  Head-and-shoulders sales lower prices and vice versa, effects that disappear within two weeks"--Federal Reserve Bank of New York web site.
Subjects: Bonds, Investment analysis, Prices, Stocks