Market Analysis6 min read

Market Sentiment Indicators: Gauging Crowd Positioning

Sentiment indicators show what other traders are doing. Learn how to use them as a contrarian signal. COT data, fear indices and how to fade or follow the.

Key Indicators

  • COT report: Commercial vs non-commercial positioning
  • VIX: High = fear (buy), low = complacency (sell)
  • Put/Call ratio: High = bearish (bullish contrarian)
  • Retail sentiment: Fade the majority

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Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70-80% of retail investor accounts lose money when trading CFDs. Backtesting does not guarantee future results. Always consider whether you can afford the potential loss of your capital.

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