Which of the following is considered a type of external indicator?

The concept of external indicators in technical analysis refers to metrics that gauge the overall market environment or investor behavior rather than the individual price action of a security. Sentiment indicators reflect the collective mood of investors about market conditions, providing insights into whether the market is leaning towards bullishness or bearishness. These indicators can help traders identify overbought or oversold conditions, which can influence trading decisions.

Sentiment analysis often involves tools like surveys, polls, and the analysis of options trading data, which provide a macro view of how investors feel about the market. This forms a key part of understanding market dynamics beyond just historical prices or trends.

In contrast, trend sensitivity, market breadth, and volume advancers/decliners are more internally focused metrics that deal directly with the price action and volume of stocks or the broader market, measuring the strength or weakness of individual securities and their trends. Thus, sentiment stands out as the correct choice for being an external indicator.