OPINION: That helps one avoid the usual mistakes: entering late, trading without confirmation, or ignoring what the crowd is already doing.
Even solid setups can go sideways if you miss what the crowd is doing. These mistakes are easier to avoid when you check sentiment first.
Mistaking silence for safety
Nobody's talking about the pair—no analysis, no news. Some see that as a safe entry, but it often signals uncertainty.
Check sentiment to get a clearer picture. A 50/50 split can suggest indecision. If one side starts building, it might indicate an upcoming shift.
Reading breakouts without context
The price breaks resistance—you buy. But if sentiment shows most traders are already long, it could be a fakeout or the end of the move. Check if the crowd got in before you—or if you’re following the first wave.
Overrelying on indicators
RSI says oversold, MACD crosses up—it looks like a buy. But if sentiment shows traders are still heavily short, it might not be time yet. Use sentiment to see if the crowd agrees or is still going the other way.
Sentiment adds context charts miss—see what other traders are doing before you act.
Why you need sentiment
Market sentiment is the percentage of traders who are buying or selling an asset. It helps you understand what the majority expects: will the price go up or down?
By watching market sentiment, you can see how the crowd is trading. Knowing if most traders are buying or selling can help you decide whether to go with the trend or take the other side.
You can also catch trends before they form - when sentiment shifts quickly, it often signals a breakout or reversal. Use that moment to open or close your position.
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