Sentiment Analysis

Financial markets are heavily influenced by trader psychology, with emotions like fear, greed, uncertainty, and euphoria driving price movements. Sentiment Analysis examines these psychological influences to gauge market trends beyond fundamental data. On TradingFinder, traders can access free tools to evaluate market sentiment, including the put/call ratio, the fear and greed index, retail sentiment data in forex, and on-chain data in cryptocurrency trading. Combining sentiment Analysis with technical and fundamental strategies enables traders to anticipate unexpected market reactions. When a high volume of buy positions is observed, it often signals an imminent sell-off. On the other hand, when retail traders are heavily selling, institutional investors may be accumulating at lower price levels. Understanding market sentiment helps traders identify divergences and hidden trading opportunities.