How does the indicator work?
The sentiment indicator shows the buyer-seller ratio in the market for each trading instrument. According to statistics, when the share of either of the participants rises above the 70% mark, it signals that the asset is overbought or oversold. In this case, the market will move in the direction of least resistance, where the share of traders is 30% or less.
How to interpret the readings of the indicator?
⩽30: the instrument is oversold, a buy signal.
⩾70: the instrument is overbought, a sell signal.
30-70: the instrument is in the neutral zone. It’s better to refrain from trading.
What are the available filter options?
Instrument — alphabetically by the instrument’s name.
Signal — by the type of signal.
Relation — based on the buyer-seller ratio.
A more advanced version of the indicator with the ability to analyze historical data is available to all registered clients in the “Services – Cayman Sentiment Indicator” section of their Personal Area.