Behavioral analysis of markets is a new area of study, proposed by James Gregory Savoldi, closely related to behavioral finance, behavioral economics and socionomics. Unlike traditional models of behavioral analysis which typically integrate insights from psychology with neo-classical economic theory, behavioral analysts of markets focus entirely on the psychology of actual market participants and how their present moods control market price movement.
Behavioral analysts are divided into two groups. One group believes that by studying current market psychology—as displayed in price action—future market psychology becomes predictable, while another group believes in limited predictability with the inevitability of occasional "Black Swan" events. Behavioral analysts of markets ignore traditional economic inputs in favor of the more empirical proof of intention through action displayed directly in market price movement. Pattern recognition and fractals play a small role in the behavioral analysts' toolkit as they use those technical analysis tools only to help predict potential market velocity as opposed to price reversals. In behavioral analysis of markets, a topping and bottoming 'count' is tracked (most similar to Elliott Wave Principle) as waves of optimism and pessimism drive price.