Every trader has their own view on why the market can move in one direction and sometimes also move in a certain direction. No matter how good the trend that has been formed, traders can experience losses. A trader should realize that the whole market is a combination of all the views, ideas, and opinions of all traders. This combination is called market sentiment.
Market sentiment is such a strong driver that it can influence the direction and movement of the market, something that often appears in various media shows that market sentiment is very dominant in influencing the dynamics of market movements. Negative sentiment will usually weaken the market and, on the contrary, positive sentiment will strengthen price movements in the market.
If there is a dominant factor in the market which then forms a bearish sentiment, for example, market participants must immediately anticipate a price drop that will encourage them to take appropriate action whether it is profit taking, hedging, or open selling in a number of possible derivative instruments. Quick action by investors will actually accelerate price movements, the downtrend of prices can be accelerated by spreading information about bearish sentiment.