Market Psychology

Market psychology refers to the prevailing sentiment and emotional state of investors in the financial markets.

Explanation
‍ Market psychology drives market trends and price movements, often leading to phenomena such as bubbles and crashes. Understanding market psychology helps traders anticipate market reactions and make informed decisions.

Practical Example of Market Psychology

During a market rally, positive market psychology can drive prices higher as investors become increasingly optimistic. Conversely, during a downturn, negative psychology can lead to panic selling and further declines.

Read more about ONE-SIGNAL and market psychology here.

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