The Fast Globex Sentiment Index is a great tool for showing the pessimism/optimism of market participants at any given time. Practically this can be used for trading in several ways: The easiest way to look at it is that when it is showing extreme pessimism price is getting in an area where a bounce could […]
As previously mentioned, the extreme values in Sentiment Index should be used as a warning signal a reversal is close. It is a great complimentary signal reinforcing other signals (like TickTools exhaustions or Cycle resistance/support) rather that a hard signal to be acted upon alone. Here is a practical example: We can see that while […]
Confirmed lows/highs occurs when both Sentiment and price action make lower lows or higher highs. This indicates the continuation of the trend. So while the extreme value in Sentiment does signal a potential short-term reversal, it is expected that after the counter-trend reaction a new low/high will be made. Here is a practical example: […]
Unconfirmed lows/highs occur when price makes a lower low (or higher high), but Sentiment makes a higher low (or lower high). This indicates pause/reversal. The reversal can be extremely powerful, especially when coming after a prolonged move and showing several unconfirmed lows/highs. This example shows just how powerful an unconfirmed low set-up can be. The […]
Note: for all components of the TT chart please check first the Tick-Tools Map article An exhaustion is an emotional event in which buyers/sellers go all-out and exhaust themselves. Normally that creates a vacuum which pushes price in the opposite direction. An Xtick is an even stronger emotional event, the strongest one occurring in the […]
Not all exhaustions hold, however when an exhaustion is broken through, that indicates that the trend in that direction is strong and there are higher than normal odds of exhaustions in the opposite direction to hold (if a SE is broken through, then when the next BEs trigger, it is more likely they will hold, […]
Reversals of attempted breakouts are very negative for the direction in which it is happening. As we can see in the below chart, the session opened with a SE Xtick, which was held cleanly, indicating that buyers were ready to step in. At point 1 we can see a BE which was triggered, but reaction […]
Once an entry is initiated at a SE/BE the most straightforward way to book profits is when TT generates an opposite signal. For example, if an entry is taken at a SE, if the market bounces and a BE is triggered, that would be a good spot to book (at least partial) profits. As a […]
The market made a lower high last week, very close to the 76,4% retrace of the entire decline off the ATH and then dropped with conviction. More than 140 points from the high registered on Tuesday, to the lows on Friday. From there, it managed to bounce but the market looks to be in a […]
The market managed to bounce back from the lows registered on the previous Friday and last week saw only green daily candles painting. It reached now a bit higher than the 61,8% retrace of the entire decline from ATH, which is quite an achievement considering how vicious the drop was. The weekly cycles have shown a […]