What is FX Sentiment Indicator?

VantageFX’s sentiment page shows the overall long and short positions of the Vantage FX order book.

The sentiment ratio between long and short positions is expressed as a percentage, with red representing the client’s short and blue representing the long sliding scale.

The sentiment indicator is one of the technical tools that Forex traders can use to make trading decisions and is well known as the standard weapon for basic and technical analysis.

This tool alerts traders to demand that could lead to price reversals, analyzes uptrends and downtrends, and tells traders the mood of the market.

Let’s take an example of this: Looking at the EUR / USD sentiment index, VantageFX can see that 95% of the order books currently hold long positions.

You knew there that 95% of the people had to sell.

Now ask yourself how many buyers you will have.

This type of supply-demand imbalance provides a short-circuit (sell) trading opportunity with the idea that 95% will start early before closing the “buy (long)”.

Please note that forex is a decentralized market, so VantageFX’s sentiment measurements are only in the Vantage FX order book.

By reading this Forex Market Psychological Indicator, you will be able to understand the thinking of the average trader and take advantage of the resulting imbalance between supply and demand.

Many of the currency pairs measured by the analysis tools will reflect the data of these professional traders.

It’s very reliable data for standard traders.

Check VantageFX’s Sentiment Indicator

Forex market

Becoming a specialized ECN Forex broker will allow VantageFX to trade in larger quantities than individual traders, which will reflect the data of these specialized traders in many of the currency pairs measured by VantageFX’s analysis tools.

See Forex Sentiment Indicator

Index market

Next is the sentiment indicator in the index market.

VantageFX focuses on the most liquid indexes around the world and boasts sufficient trading volumes to help determine sentiment.

Of course, it is very important and recommended to do market research by yourself, but VantageFX also displays indicator analysis based on its overwhelming trading volume and information, so please make a trading decision by all means.

See Stock Index Sentiment Indicator

Commodity market

Next is the sentiment analysis in the commodity market.

Although the types of stocks are limited, VantageFX has a lineup of popular ones, and the amount that can be traded is enormous.

The high trading volumes of gold, silver and crude oil are as expected, but you may be surprised to hear that the volume of copper is not really inferior to the TOP3.

See Commodity Sentiment Indicator

As you know from trend personalities, sentiment across the commodity market can also grow rapidly.

Seize opportunities through sentiment analysis.