Trader Sentiment And Positioning
this is a sentiment guage i use to help position longer time frame trades
the idea is that when a market tops or bottoms there is an extreme reading between
commercial hedgers (usually on the right side of the market )
and speculators like myself (usually on the wrong side of the market , of course excluding peat , arco and roddy )
so as an example as euro usd tops out for a major trend change
the sentiment guage will pick up the commercials being extremely short against speculators being extremely long
at the present juncture , it feels like there is no one left to go long in euro however sentiment guage disagrees and it appears there is plenty more upside in this up move .
it seems on the cards there may be a correction due but in no way does the sentiment guage indicate a top