How would you trade when market sentiments conflict with technical analysis?
Hi, mooers. Today, let's talk about market sentiments and technical analysis.![]()
Market sentiment monitoring and technical analysis are two popular approaches to analyzing markets. Technical analysis involves studying charts and price patterns, while market sentiment refers to traders' overall mood toward a particular market or asset.
Factors such as the news and market data all have a potential effect on market sentiments. When the market sentiment moves in the same direction as the analysis, that typically helps confirm that trend. However, if they do not agree, traders may find themselves in a quandary. That occurs, for instance, when technical indicators suggest a stock is oversold and due for a rebound, but the overall market sentiment is negative.
Factors such as the news and market data all have a potential effect on market sentiments. When the market sentiment moves in the same direction as the analysis, that typically helps confirm that trend. However, if they do not agree, traders may find themselves in a quandary. That occurs, for instance, when technical indicators suggest a stock is oversold and due for a rebound, but the overall market sentiment is negative.
Indeed, as a trader, you're no stranger to what impacts the news and sentiment can have on the market.
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What's your strategy when the news or market sentiment clashes with technical analysis?
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Which one do you want to trust?
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Are there other factors in play?
Feel free to share your insights and experience with us! It doesn't matter whether you are a seasoned trader or a beginner. We will learn from each other and make progress together!
Tap here to join the discussion: How would you trade when market sentiments conflict with technical analysis?
Event time: Now – Mar 27 23:59
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Disclaimer: This presentation is for information and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. See this link for more information.
Disclaimer: This presentation is for information and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. See this link for more information.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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tickerron :
funny Giraffe_6930 :
727727727 : I'm not a gambler. Buying or selling in the market these days is dangerous when you try to follow trends or tweets or whatever. I try to stick to companies with strong financials that stay out of the news and off people's radar. Too much sentiment and politics in investing lately. Remember, you're buying a piece of a company - a company that makes things or sells stuff - thus having real actual value. You're not betting on lucky dice or hoping the CEO doesn't like Taylor Swift's latest insta post. Fundamentals fundamentals fundamentals!
73114690 : I learned in business and from Buffet, that TIME can be your friend when there are conflicts in information that impact your decision! It is OK to set out for a while, be that days, weeks or months. Sit on cash may be better than losing sleep over taking uncertain risk. Holding cash, while studying the market fluctuations, world situation, fuel prices, inflation , interest rates, is likely a wise move.
Me, what did I do ? I put 1/3 my fund into CD & Treasuries, some 6 months, some 1 year. Not great return, but in 2022 I lost big time $ in several famous trades. I will take a couple weeks vacation and sleep well while I study the situation and count bank failures!
The Cow King : Do your own research and homework. Nothing is perfect. The last thing you would want to avoid is to follow people blindly.
70198652 The Cow King :
Ming-ChiKuo Tracking : Gauging market sentiment, however, is tricky.
JackieRose : There are numerous ways to measure market sentiment and get ahead of the market before big moves occur. Tracking sentiment alone is not enough to form the basis of a trading strategy but can be a useful addition to help add depth to an investor’s analysis of where markets are heading.
Rockyturki : Market sentiment should not be underestimated – people and their perception is what drives markets higher or lower. News and developments are never-ending in financial markets
RIPPER : When you see a specific, “somewhat random” stock all of a sudden “talked about” on various social media platforms overnight… That’s usually the first red flag to sell the position and stay away
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