Overview of Globex Sentiment Index Globex Sentiment Index is a representation of pessimism and optimism by market participants that is designed to provide efficacious data in the full futures sessions. Most of the tools that deal with market emotion in the TickTools toolset are limited to data data is only available during the cash sessions […]
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 […]
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: […]
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 […]
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 […]
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 […]
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, […]
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 […]