Sentiment indicator is a majority indicator, showing the trend of the market is more buying or more selling

Sentiment indicator in trading – Following the others

What is the Sentiment indicator?

The Sentiment is a simple indicator, it shows the difference the whole floor between up and down by calculating the number of orders increased and the number of orders decreased by the traders. To see if the majority of investors (experts and newbies) tend to choose to increase or decrease. For example, there is a signal that 80% of users have picked down after an actual event in the world, then it’s time to follow the trend.

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Sentiment indicator is a majority indicator, showing the trend of the market is more buying or more selling
Sentiment indicator is a majority indicator, showing the trend of the market is more buying or more selling

How to use the Sentiment indicator

When the red column accounts for more than 50%, it means that the number of people placing lower orders now is higher. Conversely, when the green column accounts for more than 50%, that is the more number of people who place an increase in the price of orders.

Low accuracy

However, this only shows the trend of placing orders of people in the market. Of course, the orders from newcomers are more crowded than professionals, so to say that this indicator is unreliable. Because a newbie has bad analysis will not be as reliable as someone with experience.

Other indicator combinations

You should combine many other indicators, and finally incorporate the Sentiment indicator to make sure of your decision. Just treat it as a confidence indicator.

See world news

Every time there is a change in the world, posted in a series, the Sentiment indicator will become much more accurate. Because at this point, professional users will place more orders, new people will not be familiar with the new and its effect. So at this time, the orders placed by professional players will be more than newbies.

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