what is market sentiment in trading?

@scooter_mx - 3 months ago - Forex Education

May I ask what market sentiment really means to you as a trader and if it really works when deciding if you should buy or sell.

@josiah_edem - 3 months ago

Market sentiment is an estimate of the percentage of traders that are buying/selling a particular instrument with a certain broker. When I was trading with AvaTrade, their mobile app used to show market sentiment for every instrument. You would usually see something like 40% buying vs 60% selling.

@melody_nk - 2 months ago

Its basically the way other traders feel at the moment for example when the market is expecting an important news release (such as NFP, CPI, Interest rate decision etc.), the market sentiment will be indecisive and I usually know this because price will just be trading in a range for several hours until the news is released then you see a breakout from the range.