A new index that intercepts, through some software, all the tweets that have to do with comments on the Stock Exchange, on the markets, on the charts, on trading techniques. The indicator, called the "sentiment" index and built by the US company Downside Hedge, is linked to the S&P500 index and captures the mood - good or bad - of investors.
It is not a statistically approved method but it can become a valuable aid since, in the vicinity of excessively low or excessively high levels, the conditions can be created for a reversal of the movement in progress. Market players can get insights from this indicator and it may happen that massive replication of information can impact quotes fueling volatility with investors moving in the direction indicated by the indicator.
Attachments: Downside Edge – Twitter Indicators for Stock Market Analysis
