Market mood index

  1. What is MMI or Market Mood Index in Share Market?
  2. 3 Month Market Prediction with MMI
  3. How to Measure Market Sentiment
  4. CL.1


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What is MMI or Market Mood Index in Share Market?

Be fearful when others are greedy & greedy when others are fearful -Warren Buffett The Market Mood Index (Market Mood Index) is a reflection of the collective mood of the market, whether it’s bullish or bearish. The Market Mood Index is a metric that tracks the overall sentiment of the stock market. It is calculated based on the opinions and emotions of investors and traders who participate in the market. Market Mood Index is a useful tool for investors who want to gauge the overall sentiment of the stock market and make informed investment decisions. The Market Mood Index takes into account a variety of factors such as economic indicators, corporate earnings reports, and news events that affect the stock market. It uses a complex algorithm to analyze these data points and determine the overall mood of the market. The MMI is typically presented as a numerical value that ranges from 0 to 100, with a score of 50 indicating a neutral market sentiment. A score above 50 indicates a bullish sentiment, meaning that investors are optimistic about the market, while a score below 50 indicates a bearish sentiment, meaning that investors are pessimistic. Whereas when we look at the Fear and Greed Index (FGI), is a popular metric used to measure investor sentiment in the stock market. It is calculated by analyzing seven different indicators, including stock price momentum, market volatility, and junk bond demand, among others. The FGI is presented on a scale from 0 to 100, where 0 indi...

3 Month Market Prediction with MMI

3 Month Market Prediction with MMI Using Market Mood Index to predict Nifty returns in the 3 months following the Extreme Fear zone. MMI has been designed to help investors better time their trades and investments. It is a sentiment index which measures the current mood in the market. The index describes the market mood using a scale of 0 to 100. The idea is not to be bothered about the exact value of the MMI, but to focus on zones — buy in high extreme fear (values below 20) and sell in high extreme greed (values above 80). You can check out all the details about MMI and different sentiment zones The objective of this post is to check how accurately MMI predicts market returns in the 3 months following the extreme fear zone. Test • Identify the dates when MMI entered extreme fear zone (MMI<20) • Check returns generated by Nifty in the 3 months following the date when MMI entered the extreme fear zone Results The chart below shows all the dates since (March 2012) when MMI dropped below 20 and the returns generated by Nifty in the next three months There were a total of 32 cases when MMI dropped below 20. Out of these 32 cases, 30 times Nifty generated a positive return in the next 3 months. This represents a success rate of 93.75%. Average return generated by Nifty in the 3 months post MMI dropping below 20 was 6.3% and the median return was 5.6%. The current value of MMI on 24th Oct, 12:21 pm is 22.81. It just came out of the extreme fear zone. It will be interesting to s...

How to Measure Market Sentiment

Market sentiment is the average sentiment toward a market or stock. If the stock or market is trending up and seems like it will continue, the sentiment is considered bullish. If it is trending down, the sentiment is considered bearish. Market sentiment is a widely used concept among short-term traders. Let's take a look at how exactly it works and whether it's useful for long-term investors. Image source: Getty Images. Understanding market sentiment Over the short-term, stocks tend to keep going in the direction they're currently going. So if they're going up, they'll keep going up. Trading based on this knowledge is called trend following or Of course, nothing trends in the same direction forever, so if you can gauge the sentiment of traders, you may be able to pinpoint when the trend will turn. Remember, Market sentiment also has a psychological tint. Bullish sentiment is often accompanied by greed and bearish sentiment by fear. Famous long-term investor How to measure market sentiment Here are a few of the technical indicators that are used to measure market sentiment. VIX The VIX, or Here's the nitty-gritty of how it works in terms that a The VIX is a good measure of market sentiment regarding volatility, but it doesn't really give you a good measure of which direction that volatility will go because it includes both calls (bullish) and puts (bearish) in its calculation. High-low index The high-low index is a measure of how many stocks in the index are creating new 52...

CL.1

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