Market sentiment is the general consensus of investors and traders regarding the activity of the market and future movement of securities prices.
The market sentiment could be either bullish, bearish or neutral. It is very often influenced by the last price movements. Market sentiment is usually bullish after a rise in securities prices, whereas it is usually bearish after a decline in securities prices.
Market sentiment can be measured by technical and fundamental analysis indicators, market breadth data (advancing declining issues, advancing declining volume, 52-week new highs and lows), survey-based indicators...
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.