The Closing Score: Extracting Sentiment From Price by Michael Slattery
Gauging the emotions and sentiment of traders in any market can be one of the most important predictive indicators you can extract from available information. But what drives sentiment and how can you make any sense of it? Well, that can be a little tricky, but here’s a low-cost approach you can appreciate.
Try as hard as you may, you’re never going to get rid of the emotions of fear and greed when you’re trading. These emotions will always creep up and try to control your decisions to enter or exit positions. The nice thing is it happens to everybody and when a certain emotion dominates among a majority of traders, it’ll be reflected in the price action that you see on your charts