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  3. /Sentiment
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Sentiment

The overall mood or attitude of market participants toward an asset.

Definition

The overall mood or attitude of market participants toward an asset. Positive sentiment drives buying, negative sentiment drives selling. Measuring sentiment through social media, surveys, and fear/greed indexes helps predict short-term moves.

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Related Terms

Fear & Greed Index

A metric that measures market sentiment on a scale from extreme fear to extreme greed.

FOMO (Fear of Missing Out)

The anxiety that others are profiting from an opportunity you're missing.

FUD (Fear, Uncertainty, Doubt)

Negative information spread to scare people into selling.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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