Predicting markets is hard. Some traders use fundamental analysis to attempt to figure out the effect of news and economic data releases. Others approach markets from the technical analysis side, using historical price action charts, indicators, and tools to interpret the current conditions and traders’ bias reflected in the current price.
You can also look at what others are doing. Being able to confirm market sentiment through empirical evidence is as close to understanding what others' bias is as you can get when trading in any open market.
Using our Sentiment Tool you can see the OANDA traders’ positions sentiment for 20 most traded instruments for the last seven days and sort them by bullish or bearish bias expressed through their positions. If total short positions outweigh long positions, the clients appear to have a “bearish sentiment” against that instrument. Similarly, if long positions exceed short positions, customers are supporting a rising “bullish” trend.
You can decide whether you would like to go along with or against the crowd while forming your trading strategy using this tool. Used together with other tools and indicators, OANDA Sentiment can supplement the decision process for whether or not to enter the trade, and in which direction, or close an existing one.