In Sentiment in the Forex Market, Jaime Saettele applies sentiment analysis to the currency market, using both traditional and new sentiment indicators, including: Commitment of Traders reports; time cycles; pivot points; oscillators; and Fibonacci time and price ratios.
Sentiment indicators such as the Commitments of Traders reports are followed by many market participants, but I have developed indicators with the data that are meant to pinpoint the few times each year that a market is likely to reverse. This helps to solve one of the biggest obstacles that many face: over-trading. By limiting yourself to making a decision when a specific set of circumstances are met, you are helping to solve the over-trading problem. Unconventional sentiment indicators such as news headlines and magazine covers offer some of the best trading signals every year.
Not to be forgotten are more traditional technical tools such as RSI and slow stochastics. Is the conventional use, to indicate overbought and oversold levels, really the best way to go? I think that there is a better way.What you will not find in this book are trade setups with rigid rules or money management tips. Markets are dynamic and the trader should be also. Money management will be different for everyone because everyone has an entirely different risk tolerance. What I hope that this book provides is a way for you to look at a specific market (and maybe others) for what it truly is: a collection of its participants that create a mind of its own, whose moves are endogenous in nature but, because of that very reason, can be exploited for profit.
- The Argument for a Sentiment-Based Approach
- The Problem with Fundamental Analysis
- The Power of Magazine Covers
- Using News Headlines to Generate Signals
- Sentiment Indicators
- The Power of Technical Indicators
- Explanation of Elliott Wave and Fibonacci
- Putting It All Together
Sentiment in the Forex Market By Jamie Saettele pdf