- Discovery the direction market will move.- Detect strength of market is strong or weak.- Confirm the possibility of a reversal of the market.- Help trader decide enter trade, hold position or exit position.
The 80/20 rule governs our lives and this rule is up to 95/5 in the forex market. That means 95% of traders was loss in this market , only the remaining 5% of traders are profitable and this profit comes from the loss traders. The fact is that the market is always against the majority of traders so when you deciding enter the forex market, you need to have data to know what the majority of traders are doing and do opposite.
When you decide to joint to forex market so you will have a lot of questions time by time: How is current trend of market? it's grow up, it's down or side way? Whether the trend is about to reverse or continue? The current strength of market is strong or weak...etc...It's not easy to answer. There are too many indicators trying to answer that questions but they are not really effective because the indicators only focus on price rather than psychological analysis of buyers and sellers.
Forex sentiment will give the data to help traders make the right decision to invest in forex market.