#MarketSentimentWatch Market sentiment watch is crucial for investors and traders to gauge the mood of financial markets. It represents the overall attitude of investors towards a particular market or asset, whether bullish or bearish.¹
To track market sentiment, investors use various indicators, including:
- *Volume*: Measures trading activity, helping identify trends and potential reversals.
- *Volatility Index (VIX)*: Tracks options prices, measuring implied volatility and market fear.
- *High/Low Sentiment Ratio*: Compares stocks reaching 52-week highs to those reaching 52-week lows.
- *Bullish Percentage Index*: Measures the percentage of stocks with point and figure buy signals.
- *Put/Call Ratio*: Analyzes the number of put options (betting on price drops) versus call options (betting on price rises).