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

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

by Charles D. Kirkpatrick
December 2011
Intermediate to advanced content levelIntermediate to advanced
208 pages
3h 14m
English
Pearson
Content preview from Time the Markets: Using Technical Analysis to Interpret Economic Data, Revised Edition

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 contribute 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 Intelligence ...

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Publisher Resources

ISBN: 9780132931946Purchase book