In Wall Street, the analyst index is a popular reverse indicator, and compared with other technical indicators, the analyst index often shows the characteristics of high accuracy and strong guidance in practice. The so-called reverse indicator means that when most analysts are bullish (usually more than 7%), stocks usually fall, and vice versa.

There are two main types of researchers of listed companies in the American capital market. One is the professional stock analysts of Wall Street investment banks. However, because they are employees of investment banks, and the income of investment banks mainly comes from commissions for underwriting, selling or buying and selling stocks, these securities analysts have obvious conflicts of interest. Traditionally, these professionals are called "seller analysts" in the United States; The other is the securities analysts and fund managers of institutional investment companies, fund management companies and hedge fund companies, as well as independent securities analysts who provide analysis reports for investors and these fund companies, but do not rely on stock trading itself to make money. They are all known as "buyer analysts". Because its final income depends on the accuracy of its analysis report, the buyer's analyst has sufficient incentive and motivation to make an objective analysis of listed companies. In the traditional sense, the analyst index only includes the views of the seller's analysts, while some analyst indexes in China include both the buyer's analysts and the seller's analysts.

as can be seen from the above classification, the analyst index including the seller's analysts usually has higher accuracy.