Crowd psychology, typically a measurement of bullish or bearish attitudes among investors and traders. There is a definite “herd” effect in market sentiment where bullish or bearish sentiment, once it is strong enough, tends to feed on itself. For example, during a bear trend negative articles in the press are given front-page headline prominence while positive articles tend to be relegated to the middle pages and are largely ignored. One of the methods for determining whether sentiment is bullish or bearish is to study the movement of the market in response to breaking positive or negative information. When the market tends to ignore positives and over-emphasise negatives then you can be sure that sentiment is bearish.

Disclaimer - All information and data contained within the PDSnet Glossary terms is for informational and educational purposes only. PDSnet makes no representations as to the accuracy, completeness, suitability, or validity, of any information, and shall not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. Information in the PDSnet glossary terms is based on the author’s opinion and experience and should not be considered professional financial investment advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Thoughts and opinions will also change from time to time as more information is accumulated. PDSnet reserves the right to delete any glossary term for any reason.« Back to Glossary Index