Forex Market Sentiment

*Disclaimer: Box is for visualization purposes only. Forex Market Sentiment Indicator is a digital product.

With billions of dollars’ worth of forex transactions placed every single day it is clear that there are many participants in the forex market.

With such a large volume of trades taking place and the majority of them being speculative, it is very important to have an edge when trading the forex market.

Fundamental analysis can give an overview of a currency pair’s direction and technical analysis can help to spot trends and reversals.

The key thing missing is one of the most important aspects for any trading strategy which is market sentiment analysis.

Market sentiment analysis will show you how many traders are in a long position, how many traders are in a short position and the volume of these positions.

When you know what the majority of traders positions are and the amount of volume of these positions, you know what the overall sentiment is.
As Forex Market Sentiment Indicator user Mirko says, “This indicator is not far to the holy grail, Thanks”!

The Forex Sentiment Indicator will show you the amount of traders who are long or short and the amount of trading volume in these positions.

The indicator is developed for MetaTrader 4 and visually displays the market sentiment data of multiple currency pairs on one chart.
With this data you can look for extreme conditions for contrarian trading signals.

The Forex Sentiment Indicator can be used stand alone or combined with any other technical and fundamental analysis. It is one piece of the puzzle to analysing the market.

The Forex Sentiment Indicator uses data collected in real time from MyFxBook which has a database with thousands of forex traders who are actively trading on real accounts.
The combined trading volume of these traders is in the billions. This gives very strong data to conduct a thorough and accurate up-to-date forex market sentiment analysis with the Forex Sentiment Indicator.

How Does It Work?

To keep it as simple as possible, you can use the market sentiment data displayed by the forex sentiment indicator to find extremes in long or short positions and volume.
When you see an extreme in either or both, you can trade against these extremes – this is known as contrarian trading. E.g. If 70% of traders and trading volume are long (buying), a contrarian trader would be looking to short (sell).

Visual display on chart

Displays all currency pairs short vs. long trading volume and total positions as figures and in a percentage.

Short vs. long volume

Displays the total size of all traders positions short and long.

Short vs. long positions

Displays how many traders are short and how many traders are long.

Average short/long price

Displays what the average price for all short and long positions are.

Filter by extremes

Filter display to only show currency pairs where the total volume and/or positions are extreme. You can choose the extreme, e.g. only show currency pairs where the total volume and/or long positions are greater than 70%.
Both volume and positions extreme can be set to true or false.

Alerts on extremes

You can choose to receive a pop-up alert, email or SMS (push notification) when there is an extreme reached on any currency pair. Using alerts is useful if you do not have the time to watch charts and wait for market sentiment extremes to be reached.

Real Time Data

Forex Sentiment Indicator data is updated every 60 seconds.

Flexible

The Forex Sentiment Indicator data can be used on any currency pair and timeframe.
You can use the Forex Sentiment Indicator with your own trading strategy or you can use it by itself.
The main way to sentiment trade is to look for volume/position extremes and trade against them (known as contrarian trading) such as the examples below.

Forex Sentiment Contrarian Trading

If there is an extreme amount of sellers a contrarian trader can see this as a buying opportunity and if there are an extreme amount of buyers it is seen as a potential selling opportunity.
Statistically speaking, 95% of traders lose so contrarian traders believe that it makes sense to go against their sentiment. In fact, according to MyFxBook data, the majority of traders are in losing positions which emphasises this.

Forex Sentiment Indicator Extremes

An extreme market sentiment can be considered anything from 70% upwards depending on the contrarian traders preference. If both the trading volume and trading positions are extreme in the same direction then this could be considered a strong contrarian trading signal.
E.g. If 70% of all traders and the total volume were short then a contrarian trader would be looking to place a contrary buy trade anticipating that the market will reverse.

Forex Sentiment Indicator Reversals

You can use technical analysis indicators such as the CCI, RSI and STOCHASTICS to help identify entry points to enter against an extreme market sentiment.
An extreme amount of positions and volume in one direction that has become overbought or oversold could be considered a contrarian entry against the market sentiment.
If traders are buying into an overbought market or selling into an oversold market, it may reverse.

Forex Sentiment Indicator Stop Hunting

The Forex Sentiment Indicator can also identify where traders have placed there stop losses. If there is an extreme in one direction, a contrarian trader may look for a recent high or low as an area where there would be a build-up of stop losses.
They would then look for the market to move rapidly against the extreme sentiment when these stop losses are triggered and other traders enter into the new market direction. Some brokers may be aware where there are a large amount of stop losses and can even move the market to trigger them.

You can also use the Forex Sentiment Indicator to show you the average prices.
If the average buy or sell entry price is far from the current price then contrarian traders may expect other traders to have their stop losses hit soon or to take their profits – both which can cause a market breakout or reversal.
If there is an extreme amount of sellers and the average short price is a good distance above the current price then a contrarian trader may expect them to be taking profits soon which could lead to the market reversing.
If there is an extreme amount of sellers and the average short price is a good distance below the current price then a contrarian trader may expect them to be hitting their stop losses soon which could lead to the market moving up rapidly.
Again, this can be combined with additional technical, fundamental and price action analysis for further confirmation.

Forex Sentiment Indicator Trend Trading

If you see the market is trending in one direction but the extreme sentiment is against the trend, this could be a sign that all of those who are against the trend may have their stop losses taken out
which could move the market further into the direction of the trend. It is then possible that the trend may continue as traders add positions and volume to the trend.

Forex Sentiment Indicator Price Action Trading

When the Forex Sentiment Indicator shows extreme sentiment in one direction, contrarian traders may look for price action candlestick patterns for entry points against the extreme sentiment.
Candlestick reversal patterns that are against the sentiment such as three inside/outside up, engulfing candles and hammers can give entry opportunities.
You may even wish to combine the sentiment extreme and price action analysis with technical analysis using indicators for further confirmation.

You can see from the examples above how it is beneficial to know the forex market sentiment when trading.
When you know what other traders are doing and where they are in the market, it can assist you in your trading.
Contrarian traders do not follow the sheep, they run with the wolves, get your copy of the Forex Sentiment Indicator now! Selection of trades taken using the forex sentiment indicator:

*Disclaimer: Box is for visualization purposes only. Forex Market Sentiment Indicator is a digital product.

You will get the Forex Sentiment Indicator with detailed instruction manual including step by step setup instructions.
Within 5 minutes you will be able to see the real time live account trading positions and volume from thousands of traders around the world from a display on your MetaTrader 4 charts.
You will get unlimited license numbers for all of your trading accounts and also free lifetime updates and support.

You can setup signal alerts for market sentiment extremes and trade it stand alone or with your own preferred technical indicators, price action and fundamental analysis.
It will identify what direction the market sentiment is and this can be used for contrarian trading.

It can be very beneficial to know what the market sentiment is, a contrarian trader does not want to trade with a blind fold on and hands tied behind their back!
The Forex Sentiment Indicator can open a whole new sentiment perspective to the forex market and the traders who help move it in one direction or the other.

There is a minimal chance that you will not be impressed with how the Forex Sentiment Indicator can be used for contrarian trading but if it is not for you then we completely understand.
If for any reason you would like to refund within 60 days of your purchase you will get your money back!

Using the Forex Sentiment Indicator can provide a new trading perspective to those who do not already use it.
Do you ever wonder why forex brokers do not display market sentiment data in their feeds? Why do they hide this information from us? I think you know the answer to that. They can use the sentiment information for themselves. It’s your time to stop following the sheep and come to run with the wolves!

We will see you on the inside!


Forex Sentiment Indicator Support.

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