An investor is “bullish” when they see upward stock trends and “bearish” when the market is going down. A bull uses its horns in an upward motion to attack and a bear uses its claws in a downward motion to attack. If investors expect upward swfx forex movement in the stock market, the sentiment is said to be bullish.
On the contrary, if the market sentiment is bearish, most investors expect downward price movement. Market sentiment is usually considered as a contrarian indicator: what most people expect is a good thing to bet against. Market sentiment is monitored with a variety of technical and statistical methods such as the number of advancing versus declining stocks and new highs versus new lows comparisons. A large share of overall movement of an individual stock has been attributed to market sentiment. A particular thread of scientific literature connects results from behavioural finance, changes of investor attention on financial markets, and fundamental principles of asset pricing: Barberis et al. Many investors use indexes to gauge market sentiment. According to the first approach, investor attention can be approximated with particular financial market-based measures.