Saettele Sentiment in the Forex Market

Indicators and Strategies To Profit from Crowd Behavior and Market Extremes
1. Auflage 2012
ISBN: 978-1-118-42880-1
Verlag: John Wiley & Sons
Format: EPUB
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 208 Seiten, E-Book

Reihe: Wiley Trading Series

Crowds move markets and at major market turning points, the crowdsare almost always wrong. When crowd sentiment is overwhelminglypositive or overwhelmingly negative ? it's a signal that the trendis exhausted and the market is ready to move powerfully in theopposite direction. Sentiment has long been a tool used by equity,futures, and options traders.
In Sentiment in the Forex Market, FXCM analyst JaimeSaettele applies sentiment analysis to the currency market, usingboth traditional and new sentiment indicators, including:Commitment of Traders reports; time cycles; pivot points;oscillators; and Fibonacci time and price ratios. He also explainshow to interpret news coverage of the markets to get a sense ofwhen participants have become overly bullish or bearish. Saettelepoints out that several famous traders such as George Soros andRobert Prechter made huge profits by identifying shifts in crowdsentiment at major market turning points. Many individual traderslose money in the currency market, Saettele asserts, because theyare too short-term oriented and trade impulsively. He believesretail traders would be much more successful if they adopted alonger-term, contrarian approach, utilizing sentiment indicators toposition themselves at the beginning points of major trends.

Autoren/Hrsg.

Saettele, Jamie

Inhaltsverzeichnis

Preface.
Acknowledgments.
Chapter 1. The Argument for a Sentiment-BasedApproach.
What Is Fundamental?
Top-Down Approach.
Reminiscences of a Stock Operator.
Chapter 2. The Problem with Fundamental Analysis.
How the Brain Works.
The Myth of Economic Indicators.
Nonfarm Payrolls.
Gross Domestic Product.
Trade Balance.
Treasury International Capital.
Producer and Consumer Price Indexes.
Conclusion.
Chapter 3. The Power of Magazine Covers.
The Death of Equities--August 13, 1979.
Magazine Covers in the Currency Market.
Conclusion.
Chapter 4. Using News Headlines to Generate Signals.
Where to Look.
Conclusion.
Chapter 5. Sentiment Indicators.
Commitments of Traders Reports.
History of U.S. Futures Trading.
Currency Futures History.
Reading the COT Report.
Using COT Data with Spot FX Price Charts.
Understanding the Data.
Watching the Commercials.
Watching the Speculators.
Commercial and Speculators Give the Same Signal.
The Approach.
Open Interest.
Other Sentiment Indicators.
Conclusion.
Chapter 6. The Power of Technical Indicators.
What Is Technical Analysis?
Keep It Simple.
What Time Frames to Use?
Support and Resistance.
Determining a Bias.
Fancy Momentum Indicators and Overbought/Oversold.
When to Get Out.
Chapter 7. Explanation of Elliott Wave and Fibonacci.
Who Was Elliott?
Fibonacci: The Mathematical Foundation.
Ratios.
Specific Setups.
Some Differences between Stocks and FX in Elliott.
Building Up from Lower Time Frames.
Multiyear Forecast for the US Dollar.
Multiyear Forecast for the USDJPY.
Conclusion.
Chapter 8. Putting It All Together.
Why Most Traders Lose.
Developing a Process.
In Conclusion.
Notes.
Index.

Über Autor(innen)

JAMIE SAETTELE is the Technical Currency strategist at Forex Capital Markets LLC (FXCM) in New York. He has contributed to Technical Analysis of Stocks and Commodities magazine, SFO magazine, Futures magazine, and Investopedia.com. His technical strategy is published daily at DailyFX.com. A graduate of Bucknell University, Saettele is an active currency trader employing both discretionary and systematic approaches to the foreign exchange market.