Definition
Anchoring bias is the tendency to let an initial price, forecast, or other reference exert excessive influence over later estimates and decisions.
In market context
A trader may treat an entry price, prior high, analyst target, or round number as meaningful even after the information supporting it has changed. Independent scenarios, ranges, and explicit invalidation criteria help reveal when a reference is driving the conclusion. Removing one anchor does not guarantee an unbiased estimate, so position limits remain necessary when judgment is uncertain in practice.
Source
Use the primary source for fuller regulatory or market context.
