Knowing About Forex Sentiment Indicator
Forex Market Sentiment
Forex or FX is known as foreign exchange or currency trading. This works as a global market where all the currencies are traded. Here, all the banks, traders, investors, etc. come to buy or sell the currencies. This is one of the biggest trading places in the world and the average exchange can be about more than $ 5 trillion in a day. The purchasing or selling is done between two currencies. While doing the transaction, the market sentiments are there because of the rise and fall of any currency pair. Also, the participants, the experts and the whole global trading community have their own perception or analysis. As anything can happen, so fundamental analysis can help anyone to understand the current condition of the Forex market and the best trading strategy. With this sentiment analysis, you will know the number of traders in a small position and also in a long position.
Forex Sentiment Indicator Review
With the Forex Sentiment Indicator, you will understand the traders’ number and the trading volume in the long and short position. It is useful for MetaTrader 4. The current sentiment data on the market for different currency pairs will be displayed in a single chart. You can easily if there is any unusual happening for the trading signal of the contrarian.
You can use it separately or combine it with other fundamental or technical survey. With the help of MyFxBook, the real time data are collected. MyFXxBook is like a directory of the traders who have real accounts and currently active. From the vast collection of information, you will get a clear picture and a latest sentiment analysis of the forex market with the help of the indicator.
Forex Sentiment Indicator Key Features
- There is a visual display, which shows the currency pairs with the trading volume of short vs. long. You will get the percentage and the figures to know it clearly.
- The short position and the long positions are colored differently. So it can be viewed and understand at a glance. So trader’s position can be determined as well by observing the size.
- From the position you can also know the exact numbers of the traders who are in short positions and also who are in a long position.
- There is another category like knowing the average price for both the long and short positions.
- There is also another user friendly option like filters. It works for the extreme conditions like the pairs, volumes or the positions show extreme. Extreme means the value of the long positions or total volume must be above 70%.
- You can set up a notification process via SMS, email or pop-up message to know about any extreme state of any currency pair. If you are busy with something else, then this method will help you to notify.
- You will always get the real data, because data is refreshed in every single minute.
- It is a very flexible system as you can use it for any time period in the world and any currency pair.
Forex Sentiment Indicator – Trading Strategy
You can set up the trading strategy as per the requirement or you can let the system run by it. You need to look for the extreme conditions of position or volume and use it to trade.
- Forex Sentiment Contrarian Trading– Here, if the number of sellers becomes very high or extreme, then as a contrarian trader it is the opportunity to buy. Similarly, if the buyer number increases, then it is a perfect chance for sellers as well. The contrarian traders want to go opposite to their sentiment because according to the statistics losing rate of traders is 95%. Even the database of MyFxBook shows that.
- Forex Sentiment Indicator Extremes- If the condition is 70% or more than that, then these are considered as an extreme condition for the market sentiment. There is a trading signal known as strong a contrarian signal. It happens when the trading positions and trading volume both are extreme and follows the same direction.
- Forex Sentiment Indicator Reversal- There are terms like RSI, CCI and STOCHASTICS. These indicators are helpful for technical analysis and let you know what to do and start during any extreme sentiment in the market. The entry against an extreme market sentiment happens when oversold and overbought are done in any extreme state. This can indicate the reversal.
- Forex Sentiment Indicator Stop Hunting- There are ways to know other traders stop losses. By identify that, other brokers help to trigger that and move the state. You can easily know the average prices. If the current price and the average prize for entries have a large gap, then other traders will try to get their profit or work on their stop losses. It may cause either a reversal or breakout.
- Forex Sentiment Indicator Trend Trading- If the market trending and the sentiment are opposite to each other, then maybe those who have not liked the trend has removed their stop losses. Maybe, then the market will follow the trend. It also depends on traders if they add more volume and position or not.
- Forex Sentiment Indicator Price Action Trading- In the graphical representation of price action, there will be some patterns like candlestick which is good for the contrarian traders as entry points. There are also other patterns which help to analyze the market.
Pros and Cons
To get the maximum profit, the analysis is really important. With the information and notification you will identify the perfect trading chances.
With this package you will get a manual which has instruction in the details. You can know everything happening in the market and what other traders doing. With the accounts, there are unlimited license numbers and free support and lifetime updates.