How accurate is the sentiment indicator?
MichaelDee posted:Sentiment indicators are good for spotting extreme emotions (too much fear or greed), but they shouldn’t be used alone. Always combine them with other analysis before making a trade.
Do you prefer a certain sentiment indicator that maybe works best when combined with other analysis?
matt88819 posted:blufxnet posted:If 80-90% of the retail investors lose money trading CFDs, then is there value in the sentiment indicator?
I think they do loose money. But doing the opposite will actually make money?
Worth to test it out! There are some Expert Advisors who simply do Reverse trades. I run my own algo and capitalize on quick price actions so unfortunately, I am not an expert on sentiment reading. However, I was making an observation earlier.
blufxnet posted:matt88819 posted:blufxnet posted:If 80-90% of the retail investors lose money trading CFDs, then is there value in the sentiment indicator?
I think they do loose money. But doing the opposite will actually make money?
Worth to test it out! There are some Expert Advisors who simply do Reverse trades. I run my own algo and capitalize on quick price actions so unfortunately, I am not an expert on sentiment reading. However, I was making an observation earlier.
Some EAs do flip trades but do they work long term?
Brenda13 posted:blufxnet posted:matt88819 posted:blufxnet posted:If 80-90% of the retail investors lose money trading CFDs, then is there value in the sentiment indicator?
I think they do loose money. But doing the opposite will actually make money?
Worth to test it out! There are some Expert Advisors who simply do Reverse trades. I run my own algo and capitalize on quick price actions so unfortunately, I am not an expert on sentiment reading. However, I was making an observation earlier.
Some EAs do flip trades but do they work long term?
It tried short term only and it worked great. But as the market conditions changes it struggles a bit not sure about long term!
blufxnet posted:matt88819 posted:blufxnet posted:If 80-90% of the retail investors lose money trading CFDs, then is there value in the sentiment indicator?
I think they do loose money. But doing the opposite will actually make money?
Worth to test it out! There are some Expert Advisors who simply do Reverse trades. I run my own algo and capitalize on quick price actions so unfortunately, I am not an expert on sentiment reading. However, I was making an observation earlier.
So what was the result from the observation?
ChelseaR posted:MichaelDee posted:Sentiment indicators are good for spotting extreme emotions (too much fear or greed), but they shouldn’t be used alone. Always combine them with other analysis before making a trade.
Do you prefer a certain sentiment indicator that maybe works best when combined with other analysis?
Good point! I like using the Fear & Greed Index and Commitment of Traders (COT) report to gauge overall market sentiment. But I always combine them with technical analysis, like support/resistance and price action, to confirm trade setups. Sentiment alone can be misleading, so context is key. Do you have a go-to indicator for sentiment?
