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[Q978.Ebook] Ebook Sentiment in the Forex Market: Indicators and Strategies To Profit from Crowd Behavior and Market Extremes, by Jamie Saettele

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Sentiment in the Forex Market: Indicators and Strategies To Profit from Crowd Behavior and Market Extremes, by Jamie Saettele

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Sentiment in the Forex Market: Indicators and Strategies To Profit from Crowd Behavior and Market Extremes, by Jamie Saettele

Crowds move markets and at major market turning points, the crowds are almost always wrong. When crowd sentiment is overwhelmingly positive or overwhelmingly negative ? it's a signal that the trend is exhausted and the market is ready to move powerfully in the opposite direction. Sentiment has long been a tool used by equity, futures, and options traders.

In Sentiment in the Forex Market, FXCM analyst Jaime Saettele applies sentiment analysis to the currency market, using both traditional and new sentiment indicators, including: Commitment of Traders reports; time cycles; pivot points; oscillators; and Fibonacci time and price ratios. He also explains how to interpret news coverage of the markets to get a sense of when participants have become overly bullish or bearish. Saettele points out that several famous traders such as George Soros and Robert Prechter made huge profits by identifying shifts in crowd sentiment at major market turning points. Many individual traders lose money in the currency market, Saettele asserts, because they are too short-term oriented and trade impulsively. He believes retail traders would be much more successful if they adopted a longer-term, contrarian approach, utilizing sentiment indicators to position themselves at the beginning points of major trends.

  • Sales Rank: #1431768 in Books
  • Published on: 2008-08-04
  • Original language: English
  • Number of items: 1
  • Dimensions: 9.30" h x .80" w x 6.30" l, .84 pounds
  • Binding: Hardcover
  • 208 pages

From the Inside Flap
With a number of firms now offering retail traders direct access to the interbank foreign exchange market, participation in the FX market has grown substantially. As a result, the amount of technical and fundamental information available to traders has increased exponentially in recent years. An area that has failed to receive the same amount of attention is sentiment.

Trading on sentiment works because market tops occur when the majority of traders are overwhelmingly bullish and market bottoms occur when an overwhelming majority is bearish. Traders that understand how to determine when a particular market is extremely bullish or bearish have an edge over those traders that follow only traditional technicals or fundamentals.

Nobody is more familiar with this situation than author Jamie Saettele. As a Technical Currency Analyst for Forex Capital Markets LLC—the largest player in the online currency-trading industry—Saettele shares his invaluable insights with thousands of traders each day. Now, with Sentiment in the Forex Market, he'll show you how to achieve unparalleled investment success byintegrating only the most effective sentiment indicators into your daily currency trading activities.

Written with the serious trader in mind, this practical guide provides you with the knowledge needed to develop a top-down, sentiment-based approach to trading the Forex market. Throughout these pages, Saettele puts the entire process in perspective, as he examines how to use Commitments of Traders (COT) reports and other important indicators to locate sentiment extremes that can lead to profitable market reversals. Along the way, he also explains how to interpret market news coverage to gain a greater sense of when participants have become overly bullish or bearish. After exploring what it takes to gauge the psychological state of the market, Saettele rounds out the discussion by addressing how to assess risk and time your currency trades using Elliott Wave theory, Fibonacci principles, and other powerful technical tools.

To profit from today's foreign exchange market, sentiment should play an important role in your trading program. With Sentiment in the Forex Market as your guide, you'll quickly discover why this is true and how you can make more money with this proven method.

From the Back Cover

Praise for Sentiment in the Forex Market

"This is a focused book on a key aspect of technical analysis. It takes a stand on the value of sentiment indicators in the Forex market and sticks with it. Anyone who has yet to build a firm foundation for understanding market behavior would do well to start with this book."
—ROBERT PRECHTER, Elliott Wave International

"Jamie Saettele uses clear logic and builds a strong case to shatter myths about efficient markets and conventional trading wisdom. In this thought-provoking work, which can be applied to a variety of trading markets, Saettele favors a road less traveled. This book will change more than a few minds about which tactics make sense in the Forex market."
—ED PONSI, President, FXEducator.com

"Jamie has done research that provides a totally unique perspective on the currency markets-—what he has to say about sentiment and crowd behavior is essential reading for every trader."
—ROB BOOKER, independent trader and host of TraderRadio.net

About the Author
JAMIE SAETTELE is the Technical Currency strategist at Forex Capital Markets LLC (FXCM) in New York. He has contributed to Technical Analysis of Stocks and Commodities magazine, SFO magazine, Futures magazine, and Investopedia.com. His technical strategy is published daily at DailyFX.com. A graduate of Bucknell University, Saettele is an active currency trader employing both discretionary and systematic approaches to the foreign exchange market.

Most helpful customer reviews

5 of 5 people found the following review helpful.
Not quite complete
By Tony
The book starts out well. It builds a case for Sentiment trading, and gets you thinking about how it actually works. The author says technical indicators are a general waste of time (However the latter half of the book is devoted to technical indicators - which makes no sense to sentiment trading... further more... the charts used are actually missing the indicators it says should be there.. pages 142-145... blank charts). Then it begins to fall apart after that. The author explains how he uses COT but never actually helps you understand the COT report itself (if you decide to look at it on line). Nor does the author explain how to set it up on your own spread sheet if you wanted to do that. How to exit a trade is so inadequate as well. Then the time devoted to "putting it all together" is one page of summary that doesn't actually tell you how to put a trading system together. Basically it means you still have a lot of work to do to put together a sentiment trading system as this book doesn't help in doing that. It seems the author attacked the subject with vigour to start with then just dropped the ball half way through and padded it out with indicators - which he says are worthless in the first half of the book anyway. I'd give it 2.5 stars out of 5 as the first half of the book is interesting... the second half you can easily replicate from information on-line and is not relevant to sentiment trading.

3 of 4 people found the following review helpful.
Absolutely essential in today's market
By A. Horne
As a active FX trader and follower of the methods of Larry Williams Jake Bernstein, I found this book essential to developing a workable, scalable and most importantly...profitable trading plan. Backtested and forward tested...in a word, it works! Solid, straightforward writing, examples and formulas. Recommended highly for the experienced trader; newbies probably won't grasp it. It is not a Holy Grail; the methodology requires a good deal of screen time experience and actual manual trading to calibrate the nuances in both calculations and charting. Slog thru it, you will not be sorry! Thank you Jamie!

15 of 18 people found the following review helpful.
Very strong tool to consider in your trade decision making process
By Joao Borras
I am a long time reader of DailyFX site and find it very useful.
One tool that caught my attention some time ago was the COT report column, write by Jamie Saettele.
The book goes further in explain the COT report itself, how to generate indicators from COT data, how to interpret it and, finally, how to use it as a tool to help trigger trades.
Well explained, with plenty of charts, it also has an introduction to Elliot Wave theory, largely used by the author in his tracking of markets.
I recommend the book because of it introduces this subject in a very straight forward way, easy to understand and apply immediately in your trading routine.

See all 17 customer reviews...

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