What is Sentiment?

Sentiment is the emotional state of one’s perception.

Why is it important?

The Sentiment Gauge is used to analyze the security you've selected (in the picture below EUR/USD) and is displayed as the central spectrum on your screen.  Before you make a trade, check this gauge first to get an overall sense of the traders’ behavior and sentiment about a particular security (i.e., either bullish or bearish). When the sentiment gauge indicates an oversold or overbought market condition, and the Opportunity Gauge is at 80% or more, then a prime opportunity exists.

trade-screen-sentiment.jpg

The multiple bars in the sentiment graph represent the different pools of traders that exhibit certain behavioral characteristics and the time horizons that they trade with. The closer to the center of the graph the shorter the time frame they trade with.  The further out the bar the longer the holding period of the instrument will be.  The colors of the bars denote the intensity of sentiment for that particular group of traders.  Blue represents the buyers or bullish sentiment that currently exists for that category of trader, conversely the color red indicates a more bearish stance or implies more sellers are present in that particular category.  The lighter the color, the more intense and concentrated the signal is.  The color spectrum ranges from a light blue/white color which indicates extreme bullish sentiment to a very light/bright yellow indicating extreme bearishness.

How it is used

This will give you an overall sense of traders’ behavior and sentiment, in the market, about a particular instrument (i.e., either bullish or bearish).  Real time sentiment informs you when the price deviates from a trend at short and long time intervals. The sentiment analyzes and measures the real-time flow rate of the Bid and Ask orders by all traders on the Exchange Electronic Trading Book. These orders are weighted by their order book characteristics.  When sentiment reaches an extreme level, this is indicated with a red line at the top or bottom of the main sentiment gauge, alerting you to a potential opportunity as it occurs.  

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