Contrarian Indicator
Market Sentiment
Definition
Market signals that suggest doing the opposite of prevailing sentiment or trends, based on the principle that extreme consensus often coincides with market turning points and reversal opportunities.
Key Points
- Extreme readings often signal reversals
- Based on crowd psychology principles
- Requires patience and strong conviction
Examples
Extreme fear readings signal buying opportunitiesUniversal bullishness warns of potential topsQuick Info
Category
Market Sentiment
Related Topics
market sentiment
crowd psychology
reversal signals
Related Terms
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