This can be thought of in a similar fashion to putting a 10% deposit down on a house; you gain access to the entire house while only funding 10%of the full value. Thus, a stop-loss of 30 pips could represent a potential loss of $30 for a single mini lot, $300 for 10 mini lots,…

When the inevitable downturn follows, investors will turn increasingly pessimistic yet surprisingly hold on to their risky portfolios to avoid capitalizing losses. Herd behavior is thus inevitably linked to market sentiment and may allow for irrational enthusiasm, which is often manifested in the form of inefficient prices and bubbles. Investors Intelligence Survey is one of…

It could be described as the aggregated public opinions, views, feelings, mood, or outlook that make up the market psychology at any point in time. Because market sentiment cannot be exactly defined or measured, there is no specific correct or incorrect way to conduct sentiment analysis. Nevertheless, there are ways to use and combine other…

The stochastic oscillator is used to decide whether a stock is expensive or cheap based on the stock’s closing price range over a period of time. A reading of 80 signals the stock is overbought (expensive), while a reading of 20 Stress Test signals the stock is oversold (inexpensive). We got our entry, but we still need to…