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Market Sentiment Index

http://sinnermansquest.blogspot.com/2007/11/market-speculation-index.html

In this blog this guy is talking about data mining analysis of market sentiment. He does not disclose the exact methodology but it is OK. I just wanted to see what he did.

I remember when for the first time I got started trading I had a strange idea. I used google news and I started to compare the key words. For example I compared the results between: buy stock and sell stock.

What a surprise when I started to plot Excel diagrams I started to observe correlation between the indexes and those tables. I thaugh I was crazy and I stopped doing that because maybe that some kind of self illusion. Until the recent months I realized that other were doing the same thing with other means.

I am very interested in information that is market related and can be quantified but is not in the chart.

 

 

Comments

  • CamaRon 2866 days ago

    Well, you are definitely on to something there.

    First, do you know what happened to the guy and his MSI ?

    Second, looking at the buy/sell orders @ Oanda, and knowing the ideas of supply/demand from Sam Seiden's teachings, one can easily see the important levels on a chart; and taking advantage of them.

    And frankly, that's all we need. I know it's easy to say such a thing,  but having watched price behaviour for a good while now, it all boils down to this: seeing the levels where the big players will enter. See image, and compare with Oanda.

    image

  • CamaRon 2866 days ago

    and the Sentiment index at FXCM for example

    http://www.dailyfx.com/technical_analysis/sentiment/

  • JohnLast 2866 days ago

    In fact what a friend of mine told me. Look for a break - out for an important level. The market will give you 7 pips whatever the break - out is. He looks to do that on 3 pairs once a day and that is all.

    A serious argument will be to analyse this in a statistical way. Is it true?

    I will write about this kind of stuff. But it merits a separate group. It is about how to use the heteroskedasticity of the price to take small pips here and there. My friend uses a proprietary indicator, but I can share the idea, in fact this is one of the oldest tricks of the traders.

    However I want separate strategies because I do not want to put all the eggs in the same basket.