Forex Market Sentiment Indicator
Forex Market SentimentWith 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 can accurately predict in which direction the market will move.