Price Correction and Its Justification in Behavioral Finance with The Jabalameli Chartical Method and Its Adaptation to The Omnipotence Defense Mechanism

Abstract

All human beings, from the moment of birth to the moment of death, without any exception, will face all kinds of bitter and sweet events, which are sometimes chosen and sometimes out of the individual's will, but either by choice or imposed, These events will have an effect on the nervous system. Because after a person enters this world from the safe environment of his mother's womb, until the moment of death, he must know his complex world and always make conscious and unconscious efforts to survive. Being according to the customs of the society or in other words becoming the same colour as the congregation is one of the most common methods of a person in order to maintain his position in society in order to ensure his survival. One of the methods of observing this behavioural phenomenon in humans is the behaviour and trading decisions of a person in the face of the price movement trend in the financial markets based on financial-behavioural. The present study is a review of the concept of price correction and its justification in behavioural finance using the Jabal Ameli chartical method, which is descriptive-analytical, and the information data required for it is collected by library and document research methods. The obtained results indicate that entering the price movement process at any point of the financial market without taking into account sufficient skill in managing it is one of the most fundamental reasons for the formation of correction and such transactions and correction can be achieved. He considered it a kind of defence mechanism to relieve the stress of the nervous system.