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Market Sentiments in Trading: Key Indicators & Strategies In the world of trading, market sentiments often act as the emotional compass guiding investor behavior. From forex to equities, understanding how collective emotions influence price movement can be a game-changer for your trading strategy. But what exactly is market sentiment, and how can traders use it to their advantage? What is Market Sentiment? The term "market sentiment" describes the general perception that investors have about a specific security or financial market. It represents the feelings that influence purchasing and selling, from confidence and optimism to dread and panic.
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