11:08
Ocean Wizdom
The bullish and bearish sentiment of the participants.
I made a study of this two days ago, the pair dollar euro, and since then the euro was down 400 points, and I said this in contrast to the majority of the market - does not that make me smart or intelligent? Not at all, I'm just using some simple tools and stepped back to measure the psychology and you can use it.
We all know that the fundamentals of supply and demand and the new will not help us earn money not only reduces the price immediately, but where the cost will depend on how investors perceive.
Proof of this is that the market will always collapse when the most bullish and rally when there most of his bearish.T is because people are dominated by greed and fear push prices too far up or down low, and when the prices have gone away prices return to fair value. Of course, away from the surrounding to study forex charts and simply follow price action.
Forex charts are a great way of trading - but the price of the currency may give reasons why they are wrong and it's a game of probabilities, not certainties - So what if we add an additional filter to identify reliable and graphic patterns give more validity to them? So you can and give you more confidence in the execution of trading signals.
In search of configurations with greed or fear has pushed prices away from fair value. History shows that a short sharp price spikes are temporary and prices return to fair value.
There is another powerful tool and is completely free, by the CFTC is every two weeks and is called net position traders. In short, it shows how open interest is broken down in the futures market (but covers currencies) and has three groups: advertising, large speculators and small speculators.
It is important to note that the tools of being above are not currently on the market, or by entering your trading signal - is the reality of the film, but warn breaks and major changes.
