Free download of : Sentiment in the Forex Market – Jamie Saettele
At its core, sentiment is a general thought, feeling, or sense. In free markets, sentiment refers to the feelings and emotions of market participants. All of the participants’ feelings toward a specific market result in a dominant psychology that is either optimistic or pessimistic.
Every change in price results from a change in the balance between optimism and pessimism. Price itself is a result of where collective psychology lies in the never-ending oscillation between optimism and pessimism. As oscillation suggests, the psychological state of a market experiences peaks (optimistic extreme) and troughs (pessimistic extreme). These sentiment extremes are what affect market tops and bottoms …….