Here is a step by step on how to analyze the market mood:
Step 1: Choose your data source
Select a reliable data source that provides real -time or historical market data, such as:
- Financial News Sites (eg CNN Finance, Bloomberg)
- Stock exchanges (eg Yahoo Finance, Google Finance)
- Online Financial Platforms (eg Etoro, RobinHood)
- Economic Indicators and Surveys (eg GDP growth, inflation rate)
Step 2: Identify market asset
Decide which market asset you want to analyze, for example:
- Stock
- Goods
- Cryptocurrency
Step 3: Select Time Schedule
Select a timeline that meets your trading strategy or analysis purposes, such as:
- Short term (1-5 days)
- Medium term (1-6 months)
- Long term (1-2 years)
Step 4: Analyze Market Mood
Use a variety of analytical tools and techniques to evaluate market mood, such as:
* Trend Lines : Identify the price movement direction using trend lines.
* Volume Analysis : Check the sales volume to determine the market activity.
* Variable average : Schedule variable average to identify trends and turns.
* Technical Indicators
: Use technical indicators such as RSI, MacD or Stochastic oscillator to evaluate your mood.
* Surveys and Messages
: Read financial news articles, economic reports and surveys to understand market expectations.
Step 5: Rate Market Mood
Give the result or evaluation to each indicator based on the following criteria:
* Trend Strength : Strong (80-100), Moderate (50-79), Weak (<50)
* Volume : High (> 10 m shares), medium (> 1-10m shares), low (<1m promotions)
* variables average : reverse or continuation (eg 200 days MA above/below 50)
Step 6: Summarize and interpret
Combine the indicators of each indicator to create a composite mood point. Then interpret the results based on your trading strategy:
* Buy a signal : A strong positive trend with a high volume and a strong variable average.
* Sell signal : A weak negative trend with low volume and poorly changing average.
* Neutral or Clock : Moderate points with a balanced trend and volume.
Step 7: clarify your strategy
Adjust your trading strategy based on market sentiment analysis:
* Buy : Powerful buying signals with high volume and strong variable average.
* Sell : Poor sales signals with low volume and poorly alternating average.
* Hold or adjust : Consider keeping money waiting for a better entrance point.
With these activities, you can develop a reliable system for market sentiment analysis and deliberate trade decisions.