Updated: Aug 5, 2021
UsdChf Daily :
The last M Pattern on november 2020 has reached target zone.
Elliot wave 5 (red) has been completed.
We could eventually expect reversal from this point.
W Pattern was formed on 22th february 2021... This is the sign of reversal we were waiting.
Notice that Elliot Wave has started 0
How did the crowd react when the daily W happened ?
We can see on H1 that Sentiment Traders Indicator* has drawn green arrow on 17th february (5 days before daily W).
At that time, majority of traders became Short.
1 month later, more than 80% of traders are still short while UsdChf has rallied up +400 pips.
The way the crowd behaves (fighting against the trend) is a good sign for the Long trade we should take on that Daily W Pattern.
Sentiment trader Indicator*
Sentiment Traders Indicator suggests to trade against the crowd.
- When most of traders are Long, Indicator suggests to sell
- When most of traders are Short, Indicator suggests to buy
Signals are issued when the majority of traders (50%/50%) switches side.
Green line means to buy as more than 50% traders are Short
Red line means to sell as more than 50% traders are Long
The last signal of Sentiment Traders will always be right, because when the trend starts, majority of traders are looking to trade high of bullish trend or low of bearish trend. They will be trapped as usual.