Cryptocurrency Social Sentiment Trading - Resource

[bene_gesserit]

Has anybody ever tried this?
https://cryptohearsay.com/2018/10/27/cryptocurrency-social-sentiment/

Do you know if this works? 

[1714912789]

1714912789

[1714912789]

1714912789

[1714912789]

1714912789

[DaMut]

No, it does not work. Talking about sentiment indicator, I remembered my past self when mostly I used margin indicator as my guide to starting my position.
let's say today it shows us we are in deep fear or bear and starting our position, in a few hours later when we hear something good like Nasdaq listing for example.
it will show you the opposite side of that sentiment when you started your position, this kind of indicator is only be used to check its current sentiment nothing more than that.

[elda34b]

Measuring sentiment is quite hard I think, and it's very possible to get biased, especially if the source is media news about cryptocurrency or blockchain in general. On top of that, we don't know how everybody react to that news. Maybe we can do a poll, but it is hard to make a poll in a short amount of time with good results, unless we wanted to sacrifice clarity. So probably be careful if you try to use any social sentiment and such.

[clrpod]

Sentiment indicators are always poor at understanding the overall trend in a market and how one set of news differs to another. To exemplify, if for example there were some moderately positive news reports around bitcoin, the sentiment indicator would move to positive, despite the fact that the sentiment probably wouldn't change in the current bearish market. News is often ignored or overlooked because people are not always rational.

[bene_gesserit]

Ok, these are all very valid points.

But don't you think sentiment could be used as an additional factor? Couldn't you try to trade based on a combination of sentiment scores and other technical indicators, like RSI, Bollinger Bands, etc. ?

[Infinixhot1996]

Ok, these are all very valid points.

But don't you think sentiment could be used as an additional factor? Couldn't you try to trade.......

That's exactly what's being said, even if you decide to trade with them or any other strategy it sure wouldn't give you a 100% satisfaction or prediction

With sentiment indicator it simply moves based on the news in the market and most times it simply could be misleading

[bene_gesserit]

I see what you mean.

But it might also be true that there is some correlation between the sentiment scores and the price movements. This is what the guy in the video said, right?
For example, look at this: https://enroyd.com/BTC_Sentiment/
The sentiment score decreased when the prices decreased.