Combining the power of both the Market Sentiment & TradingView can be a key game-changer in your trading.

The reason?

Market sentiment is an essential aspect of trading because it refers to the overall attitude and emotions of market participants at any given moment.

Knowing the Market Sentiment in real-time, reading it correctly, and ultimately taking profitable trading decisions means that you can significantly increase your profitability and get closer to top traders.

What’s even better?

You can do it on TradingView, the most popular online platform for traders!

When it comes to unlocking greater profits, there’s no better way than combining Market Sentiment & TradingView. However, how to make a good Market Sentiment analysis?

There are three fundamental steps to consider.

1. Identifying Market Sentiment 🔎

One of the key aspects of Market Sentiment analysis is being able to identify the current sentiment of the market.

How to do it correctly?

The single best way to do it is to use a reliable trading indicator. For example, our own Sentiment Index indicator is one of the best TradingView indicators for market sentiment analysis.

Why?

Because it’s simple, reliable, and massively tested over ten years of trading by countless fellow traders. Even more, it works in real-time, visualizing the actual, current market sentiment on your TradingView chart at any given moment.

Essentially, you always know what the other traders and market participants think.

Pretty powerful, don’t you think?

2. Understanding the impact of Market Sentiment on price action 📈

Ready to trade? Not quite yet!

In fact, before jumping into a trade, it’s important to understand how the market sentiment will impact the price action of the particular asset that you’re looking to trade.

For example, if the market sentiment is bullish, it’s likely that the price will rise. Similarly, if the market sentiment is bearish, it’s likely that the price will fall.

Simple, right?

Well, from what we just said, one thing should become clear in your mind: when you’re doing the market sentiment analysis, you should never focus on the most recent value alone but you should rather focus on the market sentiment trend across a period of time.

The question you should ask yourself is: how is the market sentiment moving compared to the price action?

For example, if the price keeps rising, but the trend of the market sentiment is falling, you should derive that the price is likely to fall soon and so you should look for a short selling opportunity.

In this regard, the Sentiment Index indicator is a fantastic tool to rapidly visualize this on your TradingView chart.

3. Using Market Sentiment to take trading decisions 💵

The ultimate goal of market sentiment analysis is to use it to take profitable trading decisions.

This means using the information you’ve gathered about market sentiment to make educated guesses about where the market is headed and what types of trades are likely to be the most successful.

If you want to learn practical tips on how to use Market Sentiment & TradingView effectively, you can have a look at the Sentiment Index in real-trading action on our YouTube channel.

You’ll discover how we use the Sentiment Index to perform market sentiment analysis and combine it with further indicators to take only the highly-profitable trades.

One thing is to be remembered.

When it comes to unlocking profits through market sentiment analysis, there are three fundamental steps to consider: identifying market sentiment, understanding the impact of market sentiment on price action, and using market sentiment to take trading decisions.

If you embrace these steps and integrate them into your overall trading strategy, you unlock profits and be one step closer to becoming a top trader.