How to trade with the Sentiment Index

How to trade with the Sentiment Index 300 169 Minimalist Trading – Best Trading Indicators for TradingView

How to trade with the Sentiment Index

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Introduction

Today we’re looking at another trading setup using our technical indicators, which are considered to be among the best indicators for TradingView. In particular, we’re using the Breakout Pivotal Bars in combination with the Levels and Zones, and the Sentiment Index.

By making a simple crypto technical analysis using three among our best crypto indicators for day trading, we are able to identify a high probability trade setup. The bitcoin TradingView chart is very clear to read and once the price breaks up the consolidation and the Sentiment Index breaks up the trend line as well, then we easily set both the stop loss and the target level.

Trade setup – 16 Apr 2020

How to trade with the Sentiment Index Setup 1

We might soon get a very nice buy setup since we have a clear impulse, followed by a consolidation that it’s taking place.

Let’s wait and see.

Trade update – 16 Apr 2020

How to trade with the Sentiment Index Setup 2

The buy setup on this crypto chart is confirmed because:

    1. The price broke up the consolidation that we identified and draw
    2. The breakup candle is green (colored by the Breakout Pivotal Bars)
    3. The bullish Sentiment Index broke up as well, on the same candle

This means that the market participants are getting bullish on crypto and the price movement is confirming such buying pressure.

We set the stop loss a bit lower than the breakup candle, and we set the target by projecting the first impulse to the upside.

Trade update – 16 Apr 2020

How to trade with the Sentiment Index Setup 3

The price is moving extremely impulsively to the upside and so we moved the target a bit higher, right where the resistance level is currently at.

From past experience, we know that these major levels displayed by the Levels and Zones, get tested multiple times by the price, and considering the impulsive movements, it becomes very likely that the price will move all the way up there.

Trade closed – 16 Apr 2020

How to trade with the Sentiment Index Setup 4

Within another candle, we reached the target and closed another winning trade.

Considering the impulsive movement that the price made and the fact that our initial target was pretty close to a major resistance indicated by the Levels and Zones, we’ve moved our target a bit higher because we know from past experience, that the price always likes to test those major levels (either resistance or support). In fact, in the end, the price went all the way up and passed our new target at the resistance level and we ultimately earn a 3.64x profit on this bitcoin trade which is absolutely excellent. If you need to constantly track the crypto market sentiment, and in particular the bitcoin market sentiment, then you should definitely consider our bitcoin sentiment indicator and, more generally, all our buy sell crypto indicators.