Forex Market sentiment in Multiple-Timeframe

Forex Market Sentiment 

SUMMARY

Forex price sentiment allows traders to establish whether they should be bullish or bearish on price movement. If bullish, plan for long trades. If bearish, plan for short trades.

Forex Market Sentiment in Multiple-Timeframe

Market Sentiment in multiple-timeframe gives clues to market direction.

• Market works on 3 modes – bullish, bearish and sideway.

• Multiple-timeframe – 5M / 15M / 30M / 1H / 4H / D / W / M

• Market provides 4 simple inputs to look at sentiments:
  • Opening price of session, O
  • Closing price of session, C
  • Highest price of session, H
  • Lowest price of session, L

• Closing price is very important because it shows whether market is willing to bring risk back with them. So the closing price on Friday is especially important.

• Opening price of a new week is important because it shows the accepted risk level of market participants over the weekend

Bearish Sentiment

• In a monthly chart, we can see the open, high, low and close of prices within that year. The closing price is slightly lower than opening price, so the yearly candle for EURGBP is slightly bearish.