3. Sentiments Analysis
Market sentiment in its most basic definition, defines how investors feel (emotions) about a particular market or financial instrument. The market as we know it, could potentially move in three directions; Up (Greed), Down (Fear) or Sideways (Uncertainty). As traders, sentiment becomes more positive (Bullish) as general market consensus becomes more positive. Likewise, if market participants begin to have a negative (Bearish) attitude sentiment can become negative.