Forex Market Sentiment
How’s Mr. Market Feeling? (Part 2)
When trading, traders express this
view in whatever trade he takes. But sometimes, no matter how convinced a trader
is that the markets will move in a particular direction, and no matter how
pretty all the trend lines line up, the trader may still end up losing.
A forex trader must realize that
the overall market is a combination of all the views, ideas and opinions of all
the participants in the market. That’s right… EVERYONE.
This combined feeling that market
participants have is what we call market sentiment.
It is the dominating emotion or
idea that the majority of the market feels best explains the current direction
of the market.
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