What is Market Sentiment?

Used in financial markets, market sentiment refers to the general attitude of investors and market participants towards overall market conditions (or those of a specific asset) and where they see them moving pricewise. A sustained uptrend with increasing prices typically indicates a bullish market sentiment, while a sustained downtrend with decreasing prices indicates a bearish market sentiment. Normally, the overall market sentiment is derived by compiling multiple data points which could include metrics from fundamental analysis (FA), technical analysis (TA) indicators, and market history price charts of various time frames.