Market Sentiment

Definition - What does Market Sentiment mean?

Market sentiment refers to the overall mood of the market as a whole or towards a particular currency. Market sentiment can be bullish (positive), bearish (negative) or uncertain. It is usually influenced by economic factors, news items and more than a little psychology.

ForexDictionary explains Market Sentiment

Market sentiment is not truly a measureable thing, but traders do create and utilize indicators that are thought to represent market sentiment, such as the number of buys and sells on a currency. Generally speaking, market sentiment is reflected in the trend of the market, so a bullish trend and bullish market sentiment go hand in hand.

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