We are now entering unchartered market psychology territory. SentiTrade’s 38 moving average line has crossed the 200 average, signifying a predominately bullish market sentiment. At the same time we note increasingly high levels in SentiTrade’s sentiment volatility index (V-SQ). It is now well above the 85% level, and is normally a clear sign of Read more

Tags behavioral finance application - bull bear psychology - corrective waves - crowd psychology - dominant trends - market sentiment - psychology trends - sentiment volatility - system trading

We have previously pointed out an astounding correlation between rising SentiTrade values and emerging DAX momentum. Today the SentiTrade indicator opened at 0,5. At 08.18 the sentiment quotient jumped to 0,6 and then 12 minutes later, at 08.30 to 0,65. From 8.45 to 10.30 we then see a sharp rise on the DAX index, from 7222 to 7282. Read more

Tags behavioral finance application - behavioral finance indicator - bull bear psychology - dax index - investor psychology - market prediction - market psychology - market sentiment - market sentiment values - pattern recognition - sentiment analysis - sentiment volatility - trading strategy