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Market Sentiment and Sideways level

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Ideally, we hope that:

  • Good numbers in the news should lead to the corresponding currency becoming stronger,
  • and bad numbers in the news should lead to a weakening of the corresponding currency.

But the facts are as follows:

  • Good numbers in the news that were written in the economic news calendar do not always immediately make the corresponding currency stronger.
  • Conversely, bad numbers do not always immediately make the corresponding currency weaker.

Before opening a new position:

  • It is necessary to know which of the corresponding currencies actually strengthened or weakened after the news release.
  • The market reaction to economic news or central bank statements is market sentiment.

  • This indicator is designed to detect opportunities when economic news releases or during a central bank speech.
  • The Market Sentiment indicator monitors the movement of the strength index of the USD and Euro currency pairs during such events.
  • Regardless of the numbers in the economic news, Market Sentiment makes a conclusion about which of the currencies with USD or Euro actually strengthened or weakened.
  • Market Sentiment is a technical indicator that contains the results of fundamental analysis.
  • Market Sentiment has 5 ways to reflect market activity on time frames: H1, H4, Daily and Weekly:
    1. USD strengthened and Euro weakened
    2. USD weakened and Euro strengthened
    3. USD and Euro are in a sideways movement (mixed)
    4. USD and Euro are both strengthening
    5. USD and Euro both weaken
  • The green color means strengthening, and the red color means weakening.
  • Before the gain actually occurs, it will start with a number that gradually increases from red to green.
  • Before the weakening actually occurs, it will start with a number that gradually decreases from green to red.
  • Suitable for trading on EURUSD, USDCHF, GBPUSD and EURGBP.

[spoiler title=”Read More…”]

  • Suffix Currency Pair – the suffix of the currency pair. Leave it blank if your broker does not use the suffix in the names of the pairs. For example, EURUSD, USDCHF, and so on. If your broker uses suffixes like EURUSDm, EURUSDi, and others , then enter m, i, and so on in this parameter. By default, it is empty.
  • Display Jump-Fall Daily-Weekly – if true, it shows “how far” the price will rise or fall. By default, true.
  • Display text-price – if true, the price is displayed at the rise/fall levels. By default, true.
  • leftmargin – the distance to the left to display the Market Sentiment. By default, 50.
  • bottmargin – the distance on the left to display the Market Sentiment. By default, 80.

[/spoiler]

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