In the trading world, the ability to grasp market sentiment often determines the success or failure of investors. There is a highly followed sentiment indicator, whose accuracy has been fully validated in the recent two rounds of bull and bear markets, becoming a 'magic tool' in the eyes of many traders.

The charm of this indicator lies in its intuitiveness and practicality. It quantifies complex market sentiment into simple numerical values, providing investors with clear action guidance. When the indicator value falls below 20, it suggests that market sentiment is excessively pessimistic, which may be a good opportunity to gradually accumulate positions. Conversely, when the value rises above 80, it indicates that the market may be excessively optimistic, signaling the time to gradually reduce positions.

It is worth noting that the performance of this indicator on the chart is more intuitive: the red area usually marks the market bottom, which is a potential buying opportunity; while the blue area often indicates the market top, which may be a wise selling opportunity.

However, no single indicator should be considered the sole basis for investment decisions. Wise investors will combine this sentiment indicator with other technical analysis tools and fundamental analysis to form a more comprehensive market judgment. At the same time, establishing a healthy risk management strategy and emotional control is equally important, as it helps to avoid blindly following trends and overtrading.

Overall, this sentiment indicator provides investors with a unique perspective that helps in understanding and predicting potential turning points in the market. However, a successful investment strategy requires not only accurate tools but also the ability for investors to remain calm and rational, continuously learning and adjusting their trading methods.