Sentiment Analysis
Definition
Evaluating market psychology through news, social media, and positioning data to predict price direction.
Example
Extreme bullish sentiment often precedes market reversals.
Related Terms
Frequently Asked Question
What is Sentiment Analysis in trading?
Sentiment Analysis evaluates market psychology through news, social media sentiment, COT reports, and positioning data to predict price direction. Extreme sentiment readings — very bullish or bearish — often act as contrarian signals.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.