Market Sentiment

Stay informed on market sentiment and track trends with real-time data on both long and short positions. Don't miss out on seizing opportunities.
The Most Traded Symbols
The data indicates the buyer-seller ratio of ACY Securities

What Is Sentiment Analysis?

Sentiment analysis is an alternate type of analysis, beyond fundamental and technical analysis. It reveals data on the ratio of buyers to sellers for different financial instruments, which can be expressed as percentages of trading volume or number of trades. This ratio of buyers to sellers reflects the collective mentality of retail traders and provides actionable trading signals, making it an indispensable asset for both novice and experienced traders.

How To Read Forex Sentiment?

Since sentiment indicators mainly track the positions of retail traders, their positions often move in the opposite direction of the current market trend. For example, if the USDJPY currency pair continues to rise, the proportion of retail traders who are short will be higher than those who are long. From the above, it can be seen that sentiment indicators need to be interpreted inversely. When the proportion of long positions is significantly higher, the market outlook is bearish, and when the proportion of short positions is significantly higher, the market outlook is bullish.
Here are some examples:
If the long position proportion is ≤ 40%, the signal is bullish.
If the long position proportion is > 40% and < 60%, the signal is neutral, indicating no clear short-term market direction.
If the long position proportion is ≥ 60%, the signal is bearish.

What Does The Market Sentiment Data Actually Show?

Market sentiment data reveals the overall attitude of investors and traders toward a market or asset. It shows whether they are optimistic, pessimistic, or neutral about price direction. It's measured through surveys, sentiment indicators, social media analysis, news monitoring, and technical analysis. This information helps investors gauge market mood and make decisions, but it's just one aspect of analysis and should be used alongside other tools.