Youtube Thumbnail Indicator is a modern-day contrary indicator and alternative to magazine cover indicator as the masses are shifting the consumption of content in the video format rather than text format.
Now the population of the video consumption crowd is greater than the population of magazine/newspaper/blog readers and all thanks to the 4G and upcoming 5G services.
And Youtube thumbnails are the ones psychologically designed to attract a lot of eyeballs which is quite similar to the legacy old magazine cover indicator.
First tell me What is Magazine Cover Indicator?
According to wikipedia, The Magazine cover indicator is a somewhat irreverent economic indicator, though sometimes taken seriously by technical analysts, which says that the cover story on the major business magazines, particularly BusinessWeek, Forbes and Fortune in the United States is often a contrary indicator.
Some of the famous Magazine Covers attract a lot of eyeballs and these days it has been done by Popular Youtube channels. To attract eyeballs youtube channels bring intense content. The more intense the content is more the eyeballs and thats the one thing which is considered for Youtube thumbnail as a contrarian indicator. [Though no disrespect to any of the youtube channels]
When the Crowd is Wrong?
I have strong thought that most of the time the crowd is right as long they are not educated to do so, particularly in the financial markets. But when the trading/investing sentiment is getting extreme very often stock markets behave the exact opposite of what the crowd thinks or what they have been taught with generic contents like recession, yield curve inversion, VIX (fear factor), and other storytelling with various economic factors which is new to the young crowd who often biased to take a wrong investment/trading decisions.
Here the study is all about where the masses are been attracted and what the masses are being thought.
Being contrarian is not only against the masses but when to bet against the masses.
So What do you think? Youtube thumbnails are the perfect bet to go against the masses. Against what have they been taught?