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Article: Reading the mind of the market. (sentiment indicators)(includes related article on interpreting volume)
- Article from:
- Futures (Cedar Falls, IA)
- Article date:
- July 1, 1997
- Author:
CopyrightCOPYRIGHT 1997 Summit Business Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Like psychiatrists with their clients, professional traders often delve into various market stats to see what their subject might do. Volume, open interest, sentiment indexes and Commitments of Traders reports are a few indicators that reveal a market's mood.
For some traders, sentiment is the creme de la creme of technical analysis. For others, statistics such as volume and open interest, sentiment indexes and Commitments of Traders (COT) reports merely are leftovers. While proponents discredit such criticism, they admit sentiment indicators depend not only on how you use them but when and where.
Volume
For many, the difficulty in using volume and ...