USDCHF - Weekly forecast, Technical Analysis & Trading IdeasMidterm forecast:
0.86129 is a major support, while this level is not broken, the Midterm wave will be uptrend.
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EURCHF - Weekly forecast, Technical Analysis & Trading IdeasMidterm forecast:
While the price is above the support 0.92029, beginning of uptrend is expected.
We make sure when the resistance at 0.95721 breaks.
If the support at 0.92029 is broken, the short-term forecast -beginning of uptrend- will be invalid.
Technical analysis:
A trough is formed in daily chart at 0.92525 on 12/10/2024, so more gains maximum to Major Resistance (0.95721) is expected.
Take Profits:
0.94327
0.95010
0.95721
0.96439
0.97614
0.98368
0.99295
1.00286
1.01177
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The Psychology Of Markets: A Deep Dive Into Sentiment IndicatorsMarket dynamics are mainly driven by the interaction between available assets and market demand. These forces are shaped by both retail participants and professional market makers. Public sentiment reacts strongly to media coverage and market news. When negative speculation (FUD) spreads, it tends to cause selling pressure, while positive news stimulates buying activity. This can be seen now for example in the world of crypto markets when prices react sharply to world events. And while mathematical indicators track price patterns, there are specific metrics that measure collective market psychology. Let's take a look at the key indicators that measure crowd behavior.
📍 Key Market Psychology Metrics
1. Volatility Assessment (VIX)
The Volatility Index, commonly referred to as TVC:VIX or the market's "pulse of fear," quantifies market turbulence expectations. Developed at CBOE, this tool projects anticipated market fluctuations for a 30-day window by analyzing S&P 500 options data.
📍 VIX Calculation Method:
◾️ Evaluates SP:SPX derivative contracts expiring within 30 days
◾️ Implements sophisticated mathematical modeling, including weighted calculations and interpolative methods
◾️ Synthesizes individual volatility projections into a comprehensive market volatility forecast
📍 Practical Applications
VIX serves as a psychological barometer where:
Readings below 15 indicate market stability
15-25 suggests mild uncertainty
25-30 reflects growing market anxiety
Readings above 30 signal significant turbulence potential
The index also functions as a risk management instrument, enabling portfolio protection strategies through VIX-based derivatives.
2. Market Sentiment Gauge
CNN's proprietary sentiment measurement combines seven distinct market variables to assess whether fear or optimism dominates trading activity. This metric operates on the principle that extreme fear can trigger unnecessary sell-offs, while excessive optimism might inflate valuations unsustainably.
📍 Core Components:
◾️ Price Momentum . Compares current market prices to recent average prices. Helps understand if stocks are trending up or down
◾️ New High/Low Stock Ratios. Measures how many stocks are hitting their highest/lowest points. Indicates overall market health and investor confidence
◾️ Market-Wide Directional Trends. Tracks which stocks are rising or falling. Shows general market movement and investor sentiment
◾️ Options Trading Patterns. Analyzes buying and selling of market protection options. Reveals how investors are preparing for potential market changes
◾️ Market Volatility Metrics. Measures market price fluctuations. Higher volatility suggests more investor uncertainty
◾️ High-Yield Bond Spread Analysis . Compares returns on risky versus safe bonds. Indicates investors' willingness to take financial risks
◾️ Comparative Yield Assessment . Compares returns from stocks versus government bonds. Helps understand where investors prefer to put their money
The measurement spans 0-100:
0-24: Pervasive fear
25-49: Cautious sentiment
50-74: Optimistic outlook
75-100: Excessive optimism
3. Individual Investor Sentiment Analysis (AAII Survey)
The American Association of Individual Investors conducts systematic polling to capture retail market participants' outlook. This weekly assessment provides insights into non-institutional investors' expectations for market direction over a six-month horizon. The methodology offers valuable perspective on collective retail sentiment trends.
Survey Structure : Participants respond to a focused query about market trajectory, selecting from three possible scenarios:
Optimistic outlook (Bullish) - anticipating market appreciation
Pessimistic view (Bearish) - expecting market decline
Neutral stance - projecting sideways movement
📍 Practical Applications
◾️ Contrarian Signal. Extreme readings often suggest potential market reversals. For instance, widespread pessimism might indicate oversold conditions, while excessive optimism could signal overbought markets.
◾️ Sentiment Tracking. The data helps contextualize retail investor psychology within current market conditions.
◾️ Historical Pattern Analysis. Current sentiment readings gain additional meaning when compared against historical trends.
Note: While informative, this metric specifically reflects retail sentiment and should be considered alongside institutional positioning and broader market indicators.
4. Market Participation Breadth
Market breadth analysis examines the distribution of price movements across securities to evaluate market health beyond headline index levels. This methodology assesses whether market moves reflect broad participation or concentrated activity in specific securities.
📍 Key Breadth Metrics
◾️ Advancing vs. Declining Issues . Tracks the numerical comparison between appreciating and depreciating securities
◾️ Net Advance-Decline . Calculates the cumulative difference between rising and falling stocks to identify underlying momentum
◾️ Participation Ratio . Establishes the proportion of advancing to declining securities
◾️ Moving Average Analysis . Monitors the percentage of stocks trading above key technical levels (20-day, 50-day, and 200-day moving averages)
📍 Practical Applications
◾️ Trend Validation. Strong market breadth confirms price trends, while deteriorating breadth may signal potential reversals
◾️ Early Warning System . Divergences between price action and breadth often precede significant market shifts
◾️ Trend Strength Assessment. Broad participation in market moves typically indicates more sustainable trends
This analytical framework provides deeper insight into market dynamics beyond surface-level price movements, helping investors and traders better understand the underlying strength or weakness of current market conditions.
Traders, If you liked this educational post🎓, give it a boost 🚀 and drop a comment 📣
GBP_JPY RISKY SHORT|
✅GBP_JPY is retesting a resistance level of 195.000
From where I am expecting a bearish reaction
With the price going down but we need
To wait for a reversal pattern to form
Before entering the trade, so that we
Get a higher success probability of the trade
SHORT🔥
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EURUSD The Target Is DOWN! SELL!
My dear subscribers,
My technical analysis for EURUSD is below:
The price is coiling around a solid key level - 1.0491
Bias - Bearish
Technical Indicators: Pivot Points Low anticipates a potential price reversal.
Super trend shows a clear sell, giving a perfect indicators' convergence.
Goal - 1.0413
My Stop Loss - 1.0527
About Used Indicators:
By the very nature of the supertrend indicator, it offers firm support and resistance levels for traders to enter and exit trades. Additionally, it also provides signals for setting stop losses
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WISH YOU ALL LUCK
SPY Will Collapse! SELL!
My dear friends,
Please, find my technical outlook for SPY below:
The instrument tests an important psychological level 607.93
Bias - Bearish
Technical Indicators: Supper Trend gives a precise Bearish signal, while Pivot Point HL predicts price changes and potential reversals in the market.
Target - 596.16
Recommended Stop Loss - 614.42
About Used Indicators:
Super-trend indicator is more useful in trending markets where there are clear uptrends and downtrends in price.
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WISH YOU ALL LUCK
USD-CHF Risky Long! Buy!
Hello,Traders!
USD-CHF is trading in an
Uptrend and the pair is
Making a bearish correction
But the price will soon hit
A horizontal support of 0.9020
And after the retest we will
Be expecting a local
Bullish rebound
Buy!
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GBPUSD Is Very Bearish! Sell!
Here is our detailed technical review for GBPUSD.
Time Frame: 4h
Current Trend: Bearish
Sentiment: Overbought (based on 7-period RSI)
Forecast: Bearish
The market is approaching a key horizontal level 1.247.
Considering the today's price action, probabilities will be high to see a movement to 1.240.
P.S
Please, note that an oversold/overbought condition can last for a long time, and therefore being oversold/overbought doesn't mean a price rally will come soon, or at all.
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NATGAS Buyers In Panic! SELL!
My dear friends,
Please, find my technical outlook for NATGAS below:
The price is coiling around a solid key level - 4.010
Bias - Bearish
Technical Indicators: Pivot Points Low anticipates a potential price reversal.
Super trend shows a clear sell, giving a perfect indicators' convergence.
Goal - 3.872
About Used Indicators:
The pivot point itself is simply the average of the high, low and closing prices from the previous trading day.
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WISH YOU ALL LUCK
DXY Will Go Up! Buy!
Here is our detailed technical review for DXY.
Time Frame: 1D
Current Trend: Bullish
Sentiment: Oversold (based on 7-period RSI)
Forecast: Bullish
The price is testing a key support 107.464.
Current market trend & oversold RSI makes me think that buyers will push the price. I will anticipate a bullish movement at least to 109.437 level.
P.S
The term oversold refers to a condition where an asset has traded lower in price and has the potential for a price bounce.
Overbought refers to market scenarios where the instrument is traded considerably higher than its fair value. Overvaluation is caused by market sentiments when there is positive news.
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EUR-USD Strong Breakout! Buy!
Hello,Traders!
EUR-USD is trading in a
Local uptrend and the pair
Made a bullish breakout of
The key horizontal level
Of 1.0458 which reinforces
Our bullish bias and will
Be expecting a further
Bullish move up
Buy!
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EURUSD Will Move Higher! Long!
Take a look at our analysis for EURUSD.
Time Frame: 9h
Current Trend: Bullish
Sentiment: Oversold (based on 7-period RSI)
Forecast: Bullish
The market is trading around a solid horizontal structure 1.049.
The above observations make me that the market will inevitably achieve 1.057 level.
P.S
We determine oversold/overbought condition with RSI indicator.
When it drops below 30 - the market is considered to be oversold.
When it bounces above 70 - the market is considered to be overbought.
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CHF/JPY SHORT FROM RESISTANCE
Hello, Friends!
CHF/JPY is making a bullish rebound on the 8H TF and is nearing the resistance line above while we are generally bearish biased on the pair due to our previous 1W candle analysis, thus making a trend-following short a good option for us with the target being the 169.820 level.
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Nightly SPX/SPX/SPY Predictions for 1.27.2024🔮
📅 Mon Jan 27
No major U.S. data
🌍 Global Watch: ECB signals 2025 rate cuts (25–50 bps expected).
📅 Tue Jan 28
⏰ 10:00am ET
📊 CB Consumer Confidence: 105.9 (prev: 104.7)
🌍 Global Watch: Eurozone inflation rises to 2.4% (stagflation risks).
📅 Wed Jan 29
⏰ 2:00pm ET
📊 Federal Funds Rate: 4.50% (prev: 4.50%)
📜 FOMC Statement
⏰ 2:30pm ET
🎙️ FOMC Press Conference
🌍 Global Watch: ECB downgrades 2025 GDP to 1.1% (Germany recession).
📅 Thu Jan 30
⏰ 8:30am ET
📊 Advance GDP q/q: 2.7% (prev: 3.1%)
📊 Unemployment Claims: 221K (prev: 223K)
🌍 Global Watch: ECB rate decision (25–50 bps cut expected).
📅 Fri Jan 31
⏰ 8:30am ET
📊 Core PCE Price Index m/m: 0.2% (prev: 0.1%)
📊 Employment Cost Index q/q: 0.9% (prev: 0.8%)
🌍 Global Watch: Eurozone Q4 GDP forecast: 0.3–0.4% (spillover risk).
💡 Market Insights:
📈 GAP ABOVE HPZ:
A further gap up would lead to it holding for a little, then dropping back down into the EEZ.
📊 OPEN WITHIN EEZ:
Hard to move up higher, so will slowly chop down to the Cushion levels.
📉 GAP BELOW HCZ:
Due to the ongoing momentum, we will get a slight recovery but still drop and chop back down into the lower range.
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