<h2>What is the Harvard MBA Indicator?</h2>
<p>The Harvard MBA Indicator, also known as the Harvard Sentiment Indicator, is a technical analysis tool used to gauge market sentiment by measuring the bullish or bearish bias of MBA students from Harvard Business School. It's a unique and contrarian indicator, as it suggests that when a majority of these students are bullish or bearish, the market might move in the opposite direction.</p>

<h2>How It Works</h2>
<p>The indicator is based on a survey conducted by Harvard Business School. Every year, around 1,000 MBA students are asked about their investment outlook for the coming year. The results are then published as a percentage of students who are bullish, bearish, or neutral. The Harvard MBA Indicator is calculated as the difference between the percentage of bullish and bearish responses.</p>
<p>Here's how to interpret the results:</p>
<ul>
  <li>If bullish responses outnumber bearish ones, the indicator is positive, suggesting a bearish market.</li>
  <li>If bearish responses outnumber bullish ones, the indicator is negative, suggesting a bullish market.</li>
</ul>

<h2>Why It Matters for Traders</h2>
<p>The Harvard MBA Indicator can be a useful tool for traders as it provides insights into market sentiment, which can drive market movements. Here's why it matters:</p>
<ul>
  <li><strong>Contrarian Indicator</strong>: The indicator suggests that when a majority of MBA students are bullish, the market might be overbought, and vice versa. This is because these students are often considered 'smart money', and their collective opinion can influence market movements.</li>
  <li>Market Timing</li>: Traders can use the indicator to time their entries and exits. For instance, if the indicator suggests a bearish market, a trader might choose to short sell or avoid long positions.</li>
  <li>Risk Management</li>: The indicator can help traders manage their risk by identifying potential market reversals.</li>
</ul>

<h2>Example</h2>
<p>In 2007, the Harvard MBA Indicator showed a high level of bullishness among students, with 88% expecting the market to rise. This was just before the start of the 2008 financial crisis, illustrating the indicator's potential as a contrarian tool.</p>

<h2>Key Takeaways</h2>
<ul>
  <li>The Harvard MBA Indicator is a technical analysis tool that measures market sentiment based on the investment outlook of Harvard MBA students.</li>
  <li>It's a contrarian indicator, suggesting that when a majority of students are bullish, the market might be overbought, and vice versa.</li>
  <li>Traders can use the indicator to time their entries and exits, manage risk, and gain insights into market sentiment.</li>
  <li>The indicator is published annually and can be used in conjunction with other technical analysis tools on platforms like MetaTrader 5.</li>
</ul>