Markets are driven by sentiment

Anyone who as been following the financial crisis in the past year has noticed the market has been driven mainly by the sentiment (and panic) of investors.

Since markets are driven by people, a few analytical methods have been developed over the years to better visualize human behavior as it’s being reflected on historical price charts, methods like Elliot Waves or Fibonacci attempt to use the movement in prices to predict human behavior and by predicting the behavior try to predict future price changes.

"Because humans are themselves rhythmical, their activities and decisions could be predicted in rhythms" - Ralph Nelson Elliot

The reality is that we are all different. Each one of us has a different agenda when trading, different expectation and different analysis of the market even though we are exposed to the same information; especially in a crisis situation where human behavior is anything but predictable.

Since human behavior plays an important role in market behavior, we’re developing a unique way of looking at the market by developing our own algorithm which computes a real-time market depth that can, at any time, be sliced by the trading style, technique, holding period etc.

Market Depth

New Feature: Market Depth

This means I can visualize how the day traders that specialize in the EUR/USD, have an average trade duration of 4 hours, and use the Fibonacci method see the market and how their analysis is changing in real time.

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Be sure to read the full risk disclosure before trading Forex.  Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.

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