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Time the Markets: Using Technical Analysis to Interpret Economic Data
book

Time the Markets: Using Technical Analysis to Interpret Economic Data

by II Charles D. Kirkpatrick
August 2011
Intermediate to advanced content levelIntermediate to advanced
208 pages
3h 9m
English
Pearson
Content preview from Time the Markets: Using Technical Analysis to Interpret Economic Data

8. Sentiment Indicators

Sentiment is a reflection of how investors feel about the market. The classic interpretation of sentiment is that when investors are optimistic, the market is at a top, and vice versa when investors are pessimistic. But this is true only at market extremes. In between, sentiment can be contributory to the market direction. Bullishness can be a strong force generating higher prices—until there is too much bullishness. What is “too much?” That is what a good sentiment indicator system should tell us.

Generally, sentiment indicators come in two styles: the opinion style and the action style. The opinion style is derived from either surveys of opinion or composites of others opinions. The Advisory Opinion survey of Investors ...

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Time the Markets: Using Technical Analysis to Interpret Economic Data, Revised Edition

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Publisher Resources

ISBN: 9780132597852Purchase book