- by Rahul
- 11 September, 2024
Sentiment indicators are basically physiological indicators which help in understanding the psychological condition of investors whether they are optimistic or pessimistic. These sentiment analysis helps us to know the market psychology in terms of numbers and graphs. In short we can understand sentiment analysis is a basic connection with the human brain.
While making any decision our brains play a crucial role, during investing the right choice for the right time and right price can be taken by sentiment analysis.
List of Market Sentiments Indicators :
Sentiment indicators give us insight into the market to understand the market's nature. As we know there is always biases and interference of human psychology therefore sentiment indicators give overall readings of the market.
Volatility Index
The volatility index provides a real time index that provides the expectations of the market relative to the price change of the S & P 500 index. Generally it measures the price movement of stocks. If there is high chances of price swing in index then there will be high chances of volatility.
New York Stock Exchange
Many investors can track records from stocks making 52 weeks high to stocks making 52 weeks low . Increases in any of the circumstances can cause bullish or bearish sentiments.
New York Stock Exchange 200 Day
This sentiment shows how many stocks are trading on a long term basis over a period of 200 days.
Odd lots Statistics
This shows the total number of shares bought and sold during odd lots. This is generally used for retail investors who typically have the least amount to buy and sell odd lots.
Conclusion
Human sentiments are impactful to every decision made by humans. This is one of the most important parts of human psychology. While investing also human sentiments play their specific role. But taking decisions with human sentiments can't be right all the time. Due to this there are some sentimental analysis which helps to understand the market trends.