When researching a particular stock, we put significant effort into analysis, utilizing technical analysis for short-term positions and fundamental analysis for long-term holdings. Despite extensive research, we might still observe stocks surging or dropping without any apparent reason or structural impact, which can often be attributed to investors’ emotions. Market sentiment refers to the collective attitude of investors towards specific securities or the overall market. It plays a crucial role in the ever-changing landscape of financial markets, helping us understand investors’ collective moods and psychology when making informed investment/trading decisions. By understanding different market sentiment indicators, we can gain valuable insights into potential market movements and get a glimpse into the collective psyche of market participants.
How market sentiment indicators can help
Market sentiment indicators can be highly beneficial to investors if used appropriately, offering valuable insights into market dynamics and potential trading opportunities. First, they help investors identify market…
