Title: Market sentiment - Wikipedia
Headings: Market sentiment
Market sentiment
Contents
Theory of investor attention
First approach
Second way
Third direction
Fourth road
Fifth source
Currency markets
See also
References

Content: The authors argue that behavioural patterns of retail investors have a significant impact on market returns. At least five main approaches to measuring investor attention are known today in scientific literature: financial market-based measures, survey-based sentiment indexes, textual sentiment data from specialized on-line resources, Internet search behavior, and non-economic factors. First approach
According to the first approach, investor attention can be approximated with particular financial market-based measures. According to Gervais et al. ( 2001) and Hou et al. ( 2009), trading volume is a good proxy for investor sentiment. High (low) trading volume on a particular stock leads to appreciating (depreciating) of its price. Extreme one-day returns are also reported to draw investors’ attention (Barber & Odean (2008) ). Noise traders tend to buy (sell) stocks with high (low) returns.