Sentiment in the Forex Market: Indicators and Strategies To Profit from Crowd Behavior and Market Extremes

Acknowledgments.

Chapter 1. The Argument for a Sentiment-Based Approach.

What Is Fundamental?

Top-Down Approach.

Reminiscences of a Stock Operator.

Chapter 2. The Problem with Fundamental Analysis.

How the Brain Works.

The Myth of Economic Indicators.

Nonfarm Payrolls.

Gross Domestic Product.

Trade Balance.

Treasury International Capital.

Producer and Consumer Price Indexes.

Conclusion.

Chapter 3. The Power of Magazine Covers.

The Death of Equities—August 13, 1979.

Magazine Covers in the Currency Market.

Conclusion.

Chapter 4. Using News Headlines to Generate Signals.

Where to Look.

Conclusion.

Chapter 5. Sentiment Indicators.

Commitments of Traders Reports.

History of U.S. Futures Trading.

Currency Futures History.

Reading the COT Report.

Using COT Data with Spot FX Price Charts.

Understanding the Data.

Watching the Commercials.

Watching the Speculators.

Commercial and Speculators Give the Same Signal.

The Approach.

Open Interest.

Other Sentiment Indicators.

Conclusion.

Chapter 6. The Power of Technical Indicators.

What Is Technical Analysis?

Keep It Simple.

What Time Frames to Use?

Support and Resistance.

Determining a Bias.

Fancy Momentum Indicators and Overbought/Oversold.

When to Get Out.

Chapter 7. Explanation of Elliott Wave and Fibonacci.

Who Was Elliott?

Fibonacci: The Mathematical Foundation.

Ratios.

Specific Setups.

Some Differences between Stocks and FX in Elliott.

Building Up from Lower Time Frames.

Multiyear Forecast for the US Dollar.

Multiyear Forecast for the USDJPY.

Conclusion.

Chapter 8. Putting It All Together.

Why Most Traders Lose.

Developing a Process.

In Conclusion.

Notes.

Index.