Updated: Aug 5, 2021
EurGbp Daily :
M Pattern was formed on 12th january 2021... Market crossed neckline and this level has never been broken up.
How did the crowd react when the daily W happened ?
We can see on H1 that Sentiment Traders Indicator* shows that most of traders are Long since 29th January. (2 weeks after daily M).
On H1, chart shows 2 months data.
On this period, in average 75% traders are Long, while EurGbp has declined 400 pips
The way the crowd behaves (fighting against the trend) is a good sign for the Short trade we should take on that Daily M 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 with Smart Money price manipulation.