Forex Market Sentiment Indicator - Grand Forex Systems


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Forex Market Sentiment Indicator

Forex Market Sentiment

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

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.