In the world of trading, technical analysis and fundamental analysis are two well-known tools, but do you know what sentiment analysis is?

In the world of trading, technical analysis and fundamental analysis are two well-known tools, but do you know what sentiment analysis is? It focuses on the emotions and behaviors of participants in the financial market!

Emotional analysis evaluates market sentiment by observing the market’s trading power comparison. Trader Position Report (COT) is the main reference tool for sentiment analysis. It provides us with an accurate view of current market sentiment.

The behavior of large market participants can be revealed through sentiment analysis, providing valuable insights into market dynamics. In addition, sentiment analysis can help traders respond quickly to news events or developments in the market, which are often accompanied by emotions fluctuations.

However, sentiment analysis is based mainly on past data, and it is more of a review of market sentiment than a prediction of the future. Therefore, it is often used as a supplement to transaction decisions rather than as a primary basis.

So, which analysis method would you prefer? Welcome to the comment section to discuss your ideas together.