What Is Market Sentiment – Where Will The Market Trade Today?
What is Market Sentiment and How Does It Affect Prices?
What is the market sentiment? Where will the market trade today? The market is driven by sentiment. The collective opinion of all participating traders determines where the market goes and when it will go there.
There is no better way to learn how to trade then to combine observation of market sentiment with what you already know in terms of your experience and the training tools that you utilize. The immediate price action will tell you the market sentiment – maybe.
By watching price action, it is easy to see the direction the market is going but a critical factor is how prices are moving. Are they moving briskly or slowly? Are they hesitating or are prices continuing in one direction? The way prices move is just as important as in what direction they’re moving.
Some traders don’t take this into account. An example would be the old story of the tortoise and the hare. They are both moving in the same direction, but there is a big difference in how they are doing it. The same thing is true of the market. These are all factors that must be weighed in determining to take a trade. Or to exit.
Anyone who wants to learn how to day trade S&P emini futures needs to have as much information as possible in order to help determine where to place a trade. Trading is not easy to do because it is impossible to know the future with any degree of certainty. But the market does give off signals and a wise trader needs to know how to interpret the signals. Market prices seem to move erratically, but with enough information, trading S&P emini futures can be done with a greater assurance of success. An S&P emini futures trader who has Information about market signals and knows how to use them makes knowledgeable traders much more successful than others who use “seat of the pants” method.
Some of the information that S&P emini futures traders should have are:
- The Trend
- The Intraday and / or Low
- The Calculated Trading Zone via Taylor’s Book Method
- The daily calculated range
- Support and resistance levels
- Stochastics
- Candlestick patterns
These are some of the bits and pieces of information every trader needs to have in order to assess a trade. Of course, that is not to say that even with all this information a trade will work out, but having this knowledge puts the odds of success more on the trader’s side.
Having as much information as possible gives S&P emini day traders a big advantage over “seat of the pants” traders. It cannot be stressed enough that without learning as much as possible about the market, it is highly unlikely that a trader will succeed at making money by day trading S&P emini futures, much less in a trading career.
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