Sentiment Analysis
Market mood and hub psychology indicators
Market Sentiment & Psychology
Sentiment analysis measures the overall attitude of hubs toward the market or specific currency pairs. Understanding market psychology helps hubs anticipate potential reversals and identify trend continuation patterns. Extreme sentiment readings often coincide with market turning points.
Fear & Greed Index
CONTRARIAN INDICATOR
Measures market sentiment from 0 (extreme fear) to 100 (extreme greed). Extreme readings often signal reversals.
COT Report
INSTITUTIONAL POSITIONING
Commitment of hubs report shows positions of large speculators, commercial hedgers, and retail traders.
Put/Call Ratio
OPTIONS SENTIMENT
Ratio of put options to call options traded, indicating bullish or bearish sentiment in options market.
Social Sentiment
RETAIL POSITIONING
Social media and news sentiment analysis tracking retail hub mood and positioning.
VIX (Fear Index)
VOLATILITY SENTIMENT
Volatility Index measuring market fear and uncertainty. High VIX indicates fear, low VIX suggests complacency.
Daily Sentiment Index
SHORT-TERM MOOD
Daily survey of market participants measuring bullish/bearish sentiment on major currency pairs.
Trading with Sentiment Analysis
Contrarian Signals
- ↑Extreme fear (VIX > 30, Fear Index < 25) → Potential buying opportunity
- ↓Extreme greed (Low VIX < 12, Greed Index > 80) → Potential selling opportunity
- !COT extreme positioning → Fade the crowd, follow smart money
Confirmation Signals
- ✓Combine sentiment with technical analysis for higher probability trades
- ✓Use sentiment divergences to identify potential trend reversals
- ✓Monitor sentiment shifts during major news events and market catalysts