Getting the Broader Market Trend correct is half the battle because the majority of stocks move in conjunction with the Broader Market Sentiment.
Broader Market Sentiment is the overall attitude of Traders/Investors toward a financial market. Broader Market Sentiment is the feeling or tone of a market, or its crowd psychology, as revealed through the activity and price movement of the stocks traded in that market. For example, rising prices would indicate a bullish market sentiment, while falling prices would indicate a bearish market sentiment.
By definition, vast majority of stocks move in harmony with the Broader Market Sentiment. Traders/Investors, therefore, should first understand the direction of the Broader Market Sentiment.
It is important for Traders/Investors to know which way the winds are blowing in the markets so that they can adjust their boat sails accordingly and select their stock trading directions.
Broad Market Sentiment is important because it tells us the path of least resistance for the majority of stocks.
We have devised mathematical mechanism to determine the Broader Market Sentiment into five possible finer shades:-
1. Broader Market Sentiment is Bullish
2. Broader Market Sentiment is Bearish
3. Broader Market Sentiment is Corrective in an overall Bullish Trend
4. Broader Market Sentiment is Corrective in an overall Bearish Trend
5. Broader Market Sentiment is Neutral
Best wishes.
No comments:
Post a Comment