Whether you’re trading stocks, bonds, ETFs, or commodity futures, being able to gauge the sentiment of “the crowd” is an undeniably powerful skill to hone. Quantifying how market participants feel is no easy feat, although there are some tools out there that help simplify this process. Sentiment indicators are valuable tools for helping investors quantify just how “bullish” or “bearish” market participants are feeling at a given point in time; while these indicators may be less than ideal for generating clear-cut buy and sell trading signals, investors can still gain tremendous insights from current sentiment, which can then be used in conjunction with other tools and analysis to confirm price trends and even spot potential reversals [see 101 ETF Lessons Every Financial Advisor Should Learn]. The inherent value in tracking sentiment indicators stems from a contrarian approach. If we assume that “the crowd” has a knack for selling before the bottom and [...] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts