The foreign exchange market is made up of a large number of participants, including investment banks, multinational companies, hedge funds, etc. However, behind big business and powerful financial institutions are people with emotions, fears and expectations.
The people who make up the forex market are not robots. That means they wait for prices to move in a certain way and express their feelings in different ways. This is the idea behind the Forex market sentiment. Continue reading “When is Sentiment Analysis Good and When is Bad?”
In the FOREX market there is never a reflection of all the information that it contains, because not all traders are going to act in the same way depending on the information.
What is a sentiment?
The sentiment is just a signal that indicates the possible direction of the price movement of an asset. Continue reading “Importance of sentiment analysis”
The RSI, or Relative Strength Index, is a momentum oscillator developed by J. Welles Wilder, it measures the speed and change of price movements. The Relative Strength Index oscillates between zero and 100.
The Relative Strength Index is often considered overbought when it’s above 70, while they see it as oversold when below 30. These signals can be generated by taking a look for divergences and failure swings. Continue reading “What Is Relative Strength Indicator and How to Use It”