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Sentiment analysis is centered around the emotional and psychological factors that can influence market behavior , While Technical analysis relies on historical price data and patterns to forecast future price movements.
Technical analysis is based on a financial instrument's past performance, while fundamental analysis informs traders of intrinsic market values.
Sentiment analysis is the people's behaviour in the market , while technical analysis uses numbers to guess how prices might change in the market.
Sentiment analysis is considered a leading indicator, as shifts in sentiment can precede changes in price trends. Technical analysis is often considered a lagging indicator, as it uses historical data to identify trends that have already occurred.
Technical analysis uses historical price patterns, indicators, and trends to identify potential entry and exit points, while sentiment analysis measures the emotional and psychological state of the market participants, such as fear, greed, optimism, and pessimism.
Sentiment analysis is subjective and can be influenced by biases and individual interpretations of news and events. Technical analysis aims to be objective by relying on quantifiable data and predefined rules for interpreting patterns and signals.
Sentiment analysis aims to comprehend the general mindset or sentiment of market participants, such as traders or investors. By analysing historical price and volume data, technical analysis aims to identify patterns, trends, and expected future price movements.
Understanding the general attitude or sentiment of market players, such as traders or investors, is the focus of sentiment analysis. The main goal of technical analysis is to find patterns, trends, and anticipated future price movements by examining previous price and volume data.