How to Use a Sentiment Indicator (Trading with the Sentiment Index)

How to Use a Sentiment Indicator (Trading with the Sentiment Index)

How to Use a Sentiment Indicator (Trading with the Sentiment Index) 300 169 Minimalist Trading – Best Trading Indicators for TradingView

Having a Sentiment Indicator that can tell us the Market Sentiment can be very convenient.

To this purpose, we’ve developed the Sentiment Index which is a professional sentiment indicator for TradingView.

By constantly reading the market, the Sentiment Index supports even beginner traders in being profitable.

How?

It’s simple! By revealing in Real-Time the actual Sentiment of the market.

Over the years our Sentiment Indicator has been refined and has grown in popularity on TradingView.

Its secret?

Not only it’s among the most reliable sentiment indicators ever developed.

But it’s also easily combinable with the other indicators that you are currently using.

In the live trade that you find below, you can see exactly this.

Moreover, you can easily understand how a Sentiment Indicator helps you to identify the best Trading opportunities.

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 trading 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.

We know from past experience that these major levels displayed by the Levels and Zones, get tested multiple times by the price action.

Considering the recent impulsive movement, it becomes very likely that the price will move all the way up there.

As you can see in this trade, it already happened in the past that we moved the Target and closed a profitable trade.

Trade closed – 16 Apr 2020

How to trade with the Sentiment Index Setup 4

We reached the target and closed another winning trade within just another candle.

In the end, the price went all the way up and passed our new Trading Target and we ultimately earned a 3.64x profit.

Without the Sentiment Index that acted as the initial trigger to open the trade, we wouldn’t be able to make this profit.

Do you rely on a Sentiment Indicator to open and manage your trades?

Or do you just trade without knowing the sentiment of the other market participants?

We’d love to hear from you so let us know by commenting on the YouTube video above!