I suppose it is very easy to be bearish on EURUSD now, right ? If you are, then you're just part of the other 97% of other bears. Do you know what happens when such percentage of the people thinks that a particular financial instrument will go to a certain direction. The market goes in the exactly opposite. That is the nature of the market psychology. And because this is hard to believe for some people, I would like to escort you to a short journey of the market psychology and the way markets trend and reverse. I don't want to convince anyone in anything, but just to show some facts that you may have forgotten.
In September 21, 2009 we published a chart, forecasting the mid term perspective on EURUSD:
http://marketsinside.com/images/stor...usd_210909.jpg
Back then, we set up a target for the top at 1.5100. We warned our readers that now is not the time to buy Euro. Then was the time to close long trades and to prepare for a long bear market. But one of the most important signals, that warned us that there will be a top, was the 97% ot bulls. There was no one else to buy euros. We saw a market top at 1.5150.
But we said, that we expected reversal. All we needed to see was five waves down, followed by three-waves upside pattern and then a breakthrough of the first five's bottom. That happened on January 14, 2010:
http://marketsinside.com/images/stor...usd_140110.jpg
Beautiful five waves down, and three waves up. It was clear and all we had to do was to warn our subscribers and to wait for the market to tell us whether we were right, or not. Couple of days after that chart was sent to the subscribers the market hit our third wave target.
Approximately two weeks after that we published our mid term perspective in an article called EURUSD - One chart, three letters, where gave a clear call, that we're gonna see an intensive bearish rally. Do you know what percentage of the traders thought like us ? 23 !
http://marketsinside.com/plugins/con...a89e647fb4.jpg
Yeah, it is easy to be part of the herd and to loose consistently your money. When 77 % of the people think that the euro is still in a bull market, and you shout that there is going to be, "an intensive landslide", almost nobody is listening. That is the herd magic. Only a few know and see the real future perspectives.
But let's get back to now. Near market bottoms traders' sentiment tends to go in its extreme values. Traders which are emotional and herding often sell near bottoms, and buys near tops.
http://marketsinside.com/images/stor...d_230510_d.jpg
Having this chart by your side, should warn you of what the market is about to do. To surprise the audience, again. Although we might see another low, it is clear that the market is just about to reverse and to go in the bullish side. All the charts you see here are part of articles that were written on our website and everyone could see them. But all the intraday surprises, critical levels, good places to go in the market, targets, market structure, we've been doing all the time. That is what we do in our Forex Bulletin.
In September 21, 2009 we published a chart, forecasting the mid term perspective on EURUSD:
http://marketsinside.com/images/stor...usd_210909.jpg
Back then, we set up a target for the top at 1.5100. We warned our readers that now is not the time to buy Euro. Then was the time to close long trades and to prepare for a long bear market. But one of the most important signals, that warned us that there will be a top, was the 97% ot bulls. There was no one else to buy euros. We saw a market top at 1.5150.
But we said, that we expected reversal. All we needed to see was five waves down, followed by three-waves upside pattern and then a breakthrough of the first five's bottom. That happened on January 14, 2010:
http://marketsinside.com/images/stor...usd_140110.jpg
Beautiful five waves down, and three waves up. It was clear and all we had to do was to warn our subscribers and to wait for the market to tell us whether we were right, or not. Couple of days after that chart was sent to the subscribers the market hit our third wave target.
Approximately two weeks after that we published our mid term perspective in an article called EURUSD - One chart, three letters, where gave a clear call, that we're gonna see an intensive bearish rally. Do you know what percentage of the traders thought like us ? 23 !
http://marketsinside.com/plugins/con...a89e647fb4.jpg
Yeah, it is easy to be part of the herd and to loose consistently your money. When 77 % of the people think that the euro is still in a bull market, and you shout that there is going to be, "an intensive landslide", almost nobody is listening. That is the herd magic. Only a few know and see the real future perspectives.
But let's get back to now. Near market bottoms traders' sentiment tends to go in its extreme values. Traders which are emotional and herding often sell near bottoms, and buys near tops.
http://marketsinside.com/images/stor...d_230510_d.jpg
Having this chart by your side, should warn you of what the market is about to do. To surprise the audience, again. Although we might see another low, it is clear that the market is just about to reverse and to go in the bullish side. All the charts you see here are part of articles that were written on our website and everyone could see them. But all the intraday surprises, critical levels, good places to go in the market, targets, market structure, we've been doing all the time. That is what we do in our Forex Bulletin.