"Mood" of the market

[Jetheat]

Does anyone know how to determine the so called "Mood" of the market?

How would you estimate if it was gonna be a trending day or ranging day?
What kind of research could you do at the beginning of the day to see what the sentiment is?

Thanks

[bearprofits]

Jetheat,

Search the forums for sentiment, you'll find some good posts. If the markets have been range bound like they have been for the last few days, it's a pretty good bet that they are ready to breakout. On the flip side if the market makes a big move usually the next day is a little slow. Some use Bollinger Bands, when they narrow start looking for a break.

Of course, it all makes sense after the fact, the Markets do what they want, just try and stay on the same page.

Just a poor Bear's thoughts

Good Trading

Bear

[jasperforex]

Originally posted by Jetheat
Does anyone know how to determine the so called "Mood" of the market?

How would you estimate if it was gonna be a trending day or ranging day?
What kind of research could you do at the beginning of the day to see what the sentiment is?

Thanks

For the news trading system I use its very important that I get the mood and the feel of the market for both trading and for the actual numbers, then I can make the right choice for my trades. I'm no expert yet but I usually look at all of the forums and my newswire to get this "feel". If its not strong enough I don't make any trades. I mean sort of anticipation wise. So far I have kept away from news trading since last friday GDP and I feel that waiting all week for this friday is best as everyone seems to be waiting for the jobs number. I will place my trades before the data and hope for a big big move!

[mrEURO]

Look toward the heavens my son....

or as a backup, study the candles. Do you see wicks and sticks. Turning points yield very "moody" traders. Confused even. I'd say we are confused right now.

Where there is confusion and violatility, there is opportunity waiting.

[forex1]

For the news trading system I use its very important that I get the mood and the feel of the market for both trading and for the actual numbers, then I can make the right choice for my trades. I'm no expert yet but I usually look at all of the forums and my newswire to get this "feel". If its not strong enough I don't make any trades. I mean sort of anticipation wise. So far I have kept away from news trading since last friday GDP and I feel that waiting all week for this friday is best as everyone seems to be waiting for the jobs number. I will place my trades before the data and hope for a big big move!

Many traders straddle the market a few seconds before the numbers are released and hope to be taken on the big ride but with the radar shows lately you can be whipsawed both ways before you can blink! However, I find it interesting that you place your trade before the data comes out. How long before the time? Stop loss? Stop and reverse if your initial entry was in the wrong direction, etc? Do you mind sharing some of what you do and how you do it? Maybe you can share some ideas this Friday? Of course there are no guarantees - I'm just curious to hear what you do because that's when the big moves happen but those radar shows have given me such bad whiplash at times that I'm a bit shy of trading news now!

Regards.

[jasperforex]

I trade news using an options system from ebay so if you want more details that's the place to go and search for data trading. The way it works is you calmly make your trades a minute or so before the data and then sit back and hope for the best. Actually first there's some assessment work to do to see if you should trade at all but once you've done that then you make the trades and wait. No stop losses are used instead you have to just be prepared to right off the costs if there's no movement, but I've done it three times now and each time I've managed to keep costs down to no more than a £100, so its a small risk. If I have down my sums correctly, tomorrow should be a huge earner and that would be great as I have been waiting all week for it!

[Jetheat]

I'd like to be able to get a feel for the market from the beginning of the day to see whether it would trend that day or range.

What would be the best source of information to determine this and in what direction.

Appreciate some detailed tips.
Thanks

[nazzdack]

The Market Profile can be a good method for developing strategy within an intraday & overnight time horizon. It also talks about trendy & congested days in trading. Jim Dalton, Kevin Koy & Pete Steidlemeyer are the authors of that subject matter. Check it out.