How do you gauge market sentiment as a beginner?

Sentiment is the market's collective mood: bullish, bearish or unsure. Beginners read it from headlines; traders read it from positioning, positioning reports and price behaviour.

How do you gauge market sentiment as a beginner? — moving average crossover diagram
A fast moving average crossing a slower one

What's your sentiment toolkit?

  • the indicators or reports you check
  • how sentiment fits into your trade decisions
  • the sentiment signal that burned you
How do you gauge market sentiment as a beginner? — risk-reward diagram
A risk-reward ratio of 1 to 2

The risk-on risk-off guide is the natural starting point.

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