“A general thought, feeling or sense of traders toward a financial instrument” -MARKET SENTIMENT MEANING IN FOREX Part 3
As a smart retail trader:
MARKET SENTIMENT MEANING IN FOREX
- You will closely notice a change in market sentiment linked to professional trading activity.
- You will gain yourself for the next big move as they contribute more than 60% of daily trading volumes in forex.
How leading indicators used in this strategy reveal underlying market sentiment?
MARKET SENTIMENT MEANING IN FOREX.
- ELLIOT WAVES – Waves termination brings a change in underlying sentiment. Change in sentiment means trading reversal & also a trading opportunity.
- PRICE ACTION- Strong candlesticks pattern leave Trace of change in existing sentiment.Closing price reversal professional bias towards a trading instrument.
- VOLUMES- Volume confirms the change in existing sentiment hinted at by Elliott waves and prise action by validating the price reversal.
You will learn to BUY LOW and SELL HIGH by using this sentiment-based trading approach.
TWO TYPES OF MARKET SENTIMENT
BULLISH MARKET SENTIMENT-
- Present a buying opportunity.
- Sellers lose control of the price
- A prise bottom makes start to bullish market sentiment.
- Professional traders see this as an opportunity to buy in a large amount.
BEARISH MARKET SENTIMENT:
- Present a selling opportunity.
- Sellers come in large numbers.
- Bearish market sentiment is accompanied by a prise top.
- Professional traders look to sell at the price of buying weakens.
Both sentiment extremes offer the opportunity for a retail trader to buy or sell a currency pair at the RIGHT PRICE and the RIGHT TIME.
THE REMINISCENCES OF A STOCK OPERATOR, MOST VALUABLE WORD IN THIS BOOK
“The book revolves around the story of Jesse Livermore, Who was a great speculator of the stock market in the 1920s. The author narrates the story filled with fear, greed & jealously that investor has in their behavior.” –Collected by the reminiscences of a stock operator bool. “MARKET SENTIMENT MEANING IN FOREX”
Original text: Market Dynamic Are Timeless.
Now, where does history indulge in receptions so often or so uniformly as in-wall Street? When you read contemporary accounts of booms or panic the one thing that’s a strike to you most forcibly is how little either speculators or speculation today differ from yesterday. The game does not and neither does human nature.”
Sentiment has been, is, and always will be fundamental to prise any market. Prise pattern that occurred 50-100 years ago, Occur now and occurs in the future. A market price is determined by fear and greed, Which is manifested through the activities of the market participants; Trader, investors, Speculators, and the like. This will never change.
SUMMARY OF PART 2 & 3
In order To succeed:
- Think and trade like a long-term investor, and not like a short time trader.
- Manage risk per trade with discipline.
- Manage returns using portfolio approach by trading multiple pairs in forex.
2. Educate yourself in the right way, and stay away from these trading gurus.
3. Emulate the winners who win 90% of the time, not the losers who have a 90℅ loss ratio.
4. And finally, respect money and it will respect you, trading is not gambling.
THANKS FOR READING, Next, see part 4 “Elliott wave principle”