Sentimental analysis explained!

[EarnOnVictor]

I've read from some forum members expressing Sentimental analysis wrongly, hence the need for me to explain it today. Perhaps, it could be useful for some people in theory and in practice.

Basically, there are two types of analysis, and they are Technical and Fundamental analysis, however, they will always be the only true analytical types in trading. The sentimental analysis on the other hand relies on what other traders have analyzed and concluded through Technical and Fundamental analysis and research.

To make it clearer, Sentimental analysis is the act of sorting for or collecting established signals, data, market biases and commentaries of other traders/experts. This happens mostly when traders don't believe in themselves. They might want to solely rely on the external signals/data they trust or use them to confirm their own analysis.


The screenshots below should give further clues:



Does Sentimental analysis work?

Yes, it does if used rightly, and I'd used it before getting to my present state in trading. All you need is to find the right channels for your information and you will be fine. The people using this analytical type can collect as much as possible data for a particular asset before they eventually use the ones with the highest number or percentage in a particular direction as their chosen signal/bias.

Image sources: Online (Investing, ActionFX, FXSSI)

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[adaseb]

I used this type of sentiment analysis back in my forex trading days and honestly I will say that it doesn't work. I think there is more too it than just how many traders are long or short. Usually in a bull market, everyone is long, even at the top and same vice versa. If you use these sentiment analysis you will enter way too late and exit when it might reverse again.

With crypto just use liquidation data and open interest on futures with the major pairs like ETH or BTC. It will be more accurate than this sentiment analysis. You can also add some technicals to filter out some bad trades but in general, nothing is the holy grail method.

[tjtonmoy]

To make it clearer, Sentimental analysis is the act of sorting for or collecting established signals, data, market biases and commentaries of other traders/experts. This happens mostly when traders don't believe in themselves. They might want to solely rely on the external signals/data they trust or use them to confirm their own analysis.

I don't think this is what a sentimental analysis is. It contains positive, negative and neutral emotions towards the market. And based on that, many share their thoughts on the price movements. Or sometimes they say their thoughts about many crypto's future. This could be positive or negative. Because neutral doesn't have that much effect here.
So from my POV, it's totally manipulating the market based on someone's personal comment. Which has nothing to do with the original analysis and doesn't rely on any data. And as they are sudden, the effect also stays for a very short period of time. Which makes it a risky choice.
HODL for a long time. That's what I believe. And I enter by using TA. And sometimes sentimental analysis can also give you an advantage. But you need to be very careful if you want to use that opportunity in your favor.

[Hamza2424]

Hmm, I would like to know which user can you particularly mention, because I think I have also recently covered this topic, and if you have read it then there is a possibility if you have read it completely you might misunderstand it. In my topic, I have covered Sentimental analysis in the short term and I have explained in two words that it's all about "Fear and Greed" The basic introduction to sentimental analysis was covered in the previous topic. So buddy let me know you are talking about my topic. I can explain in way better words to you,

--Regards Hamza

Tips for Descriptive and Sentimental Analysis (V4)

[EarnOnVictor]

I used this type of sentiment analysis back in my forex trading days and honestly I will say that it doesn't work. I think there is more too it than just how many traders are long or short. Usually in a bull market, everyone is long, even at the top and same vice versa. If you use these sentiment analysis you will enter way too late and exit when it might reverse again.

With crypto just use liquidation data and open interest on futures with the major pairs like ETH or BTC. It will be more accurate than this sentiment analysis. You can also add some technicals to filter out some bad trades but in general, nothing is the holy grail method.

Like I've iterated, it would work if you used it well. It worked for me back in those days and I learned my trading through the commentaries of the experts I read their work. You see, the sentimental analysis approach is many but the best is to look for sites that give daily commentaries and biases, you may use other ones with percentage dashboards, but should use them to compare your own analysis first.

And if they tally, you can open the trade without fear. Most people are entering into trouble with sentimental analysis because they solely rely on external sources. Still, some external sources are good, only that you just take time to verify them first. At least, I know two of them back then, and they didn't fail me, they as a matter of fact thought me part of what I know today.

To make it clearer, Sentimental analysis is the act of sorting for or collecting established signals, data, market biases and commentaries of other traders/experts. This happens mostly when traders don't believe in themselves. They might want to solely rely on the external signals/data they trust or use them to confirm their own analysis.

I don't think this is what a sentimental analysis is. It contains positive, negative and neutral emotions towards the market. And based on that, many share their thoughts on the price movements. Or sometimes they say their thoughts about many crypto's future. This could be positive or negative. Because neutral doesn't have that much effect here.
So from my POV, it's totally manipulating the market based on someone's personal comment. Which has nothing to do with the original analysis and doesn't rely on any data. And as they are sudden, the effect also stays for a very short period of time. Which makes it a risky choice.
HODL for a long time. That's what I believe. And I enter by using TA. And sometimes sentimental analysis can also give you an advantage. But you need to be very careful if you want to use that opportunity in your favor.

You are getting it all wrong, I believe you should next time consult the internet first before you correct someone on what you don't know so that you don't expose your ignorance.

Sentimental analysis is what I had explained, what you are explaining might be the sentiment of the market, which is the behaviour of the market at a time, it could be called the bias and trend as well. This could be Buy/Positive, Sell/Negative or Neutral depending on the demand and supply in the market.

This is in no any way related to sentimental analysis, you should know the difference.

Hmm, I would like to know which user can you particularly mention, because I think I have also recently covered this topic, and if you have read it then there is a possibility if you have read it completely you might misunderstand it.

I've certainly not read your post in this regard, once a topic is similar, you might think it's you the finger is pointing to, but no one should feel this way. It's just a general conception of what I have been reading from posters regarding sentimental analysis. The main goal is for everyone interested to learn from it.

[tbct_mt2]

Does Sentimental analysis work?

Yes, it does if used rightly, and I'd used it before getting to my present state in trading. All you need is to find the right channels for your information and you will be fine. The people using this analytical type can collect as much as possible data for a particular asset before they eventually use the ones with the highest number or percentage in a particular direction as their chosen signal/bias.

You can only use Sentimental analysis well if you understand about the Psychology of market well too.

Fundamentals are things to help Bitcoin gaining its value and growing with time, getting more widely recognition and adoption. Fundamentals are for long term.

Sentimental or psychological factors will impact the market and price in short term and mid term. You must understand it to avoid panic, fear, uncertainty and be weak in this volatile market. When you understand the market psychology, you will be able to have diamond hands as well as be able to take advantage of panic sell.

[Yamane_Keto]

The people using this analytical type can collect as much as possible data for a particular asset before they eventually use the ones with the highest number or percentage in a particular direction as their chosen signal/bias.

It is the first time that I have heard of this type of analysis, what gives these analyzes value, in the sense that will I rely on a third party to analyze the data and show it to me as a ratio, and here is closer to the trading signals that proved to be a wrong strategy.

Or that the user himself is the one who will analyze this data and extract the percentages, and here he must have basic knowledge to determine which of this percentage deserves weighting over the other.

On both sides, we return to fundamental and technical analysis, but indirectly. Therefore, whoever wants to continue trading will need to learn them in one way or another.

[Oshosondy]

The sentimental analysis on the other hand relies on what other traders have analyzed and concluded through Technical and Fundamental analysis and research.

As an investor, you believe in bitcoin four year cycle and also believe in bull market after a massive bear market. If the price of bitcoin reach a very low price after a massive bear market, then use it as a analysis that the bull market is coming. Then what type of analysis is that? You do not rely on the fundamental and technical analyses, but just believe that after a massive rain, that the sun will come out and shine again. That is what I see as sentimental analyses. Sentimental analysis is the type that an investor do not rely on fundamental and technical analyses but still able to use other means to predict what the price of a coin can be in the future. I am not saying you are wrong though, but I am just giving the broader overview.

[Dunamisx]

In bitcoin trading and looking it from the general perspective, both the fundamental and sentimental analysis were both required for a proper trading experience, one cannot rely on one against the other because they were both useful in making market strategy and speculations on the price, one thing we may not get as an assurance is the use of any of these analysis as a guaranteed means to predict right and always make positive outcome with increasing income, everything though work together to make the market favourable and to aligned to the direction of how we've seen it already.

[joniboini]

It is the first time that I have heard of this type of analysis, what gives these analyzes value, in the sense that will I rely on a third party to analyze the data and show it to me as a ratio, and here is closer to the trading signals that proved to be a wrong strategy.

I feel like these 'free' analyses are similar to pump & dump signals, just not as explicit. It is unavoidable since you get somewhat outdated data if you rely on another party to collect and aggregate the market movement for you. It is true that sometimes it works, but a broken clock can also do the same thing if you let it run long enough.

At the end of the day, most indicators can fail for various reasons. I doubt people only use one type of indicator to decide their trade anyway. As long as they know and realize that they can get tricked by self-fulfilling prophecy or being used by big players as exit liquidity, they should be able to filter the information.

[palle11]

hence the need for me to explain it today. Perhaps, it could be useful for some people in theory and in practice.

Are you claiming credit for this work? I think you should provide link or source where you got this from.

To make it clearer, Sentimental analysis is the act of sorting for or collecting established signals, data, market biases and commentaries of other traders/experts.

Apart from data gotten from technical and fundamental analysis, you refuse to talk about the emotion of traders that also arise from same data analysed. Greed and fear are majorly what makes sentiment a factor to be considered in trading. It is not enough to trigger sell or buy because they are what are shown in trading channels, what about when market is over sold or over bought, this is why late emotional comers pay the price by losing.

This happens mostly when traders don't believe in themselves. They might want to solely rely on the external signals/data they trust or use them to confirm their own analysis.

This shows is an aggregate of trader's disbelieve and fear that is defined as market sentiment.

Does Sentimental analysis work?

Yes, it does if used rightly, and I'd used it before getting to my present state in trading. All you need is to find the right channels for your information and you will be fine.

No it doesn't. It doesn't work as perfectly as you want it to be believed. Sentiment is another type of penetrating the market for entry purpose just like technical and fundamental analysis

[CarnagexD]

I've read from some forum members expressing Sentimental analysis wrongly, hence the need for me to explain it today. Perhaps, it could be useful for some people in theory and in practice.

Basically, there are two types of analysis, and they are Technical and Fundamental analysis, however, they will always be the only true analytical types in trading. The sentimental analysis on the other hand relies on what other traders have analyzed and concluded through Technical and Fundamental analysis and research.

To make it clearer, Sentimental analysis is the act of sorting for or collecting established signals, data, market biases and commentaries of other traders/experts. This happens mostly when traders don't believe in themselves. They might want to solely rely on the external signals/data they trust or use them to confirm their own analysis.


The screenshots below should give further clues:



Does Sentimental analysis work?

Yes, it does if used rightly, and I'd used it before getting to my present state in trading. All you need is to find the right channels for your information and you will be fine. The people using this analytical type can collect as much as possible data for a particular asset before they eventually use the ones with the highest number or percentage in a particular direction as their chosen signal/bias.

Image sources: Online (Investing, ActionFX, FXSSI)

Sentimental analysis is basically finding relevant and more importantly a piece of objective information that you can correlate to your type of trading. It is true that if used correctly, this will give you an edge over your trading. It is a double edge sword.

What's difficult in this is your dependency on the channels you are gathering information. How much trust can you put on other people's analysis? As long it is true, as long as the information you get is helpful and beneficial to your trading, then simply use it. And don't use it as your signal, use is as an information to come up with your own decision. Otherwise, you're gambling other people's analysis.

In bitcoin trading and looking it from the general perspective, both the fundamental and sentimental analysis were both required for a proper trading experience, one cannot rely on one against the other because they were both useful in making market strategy and speculations on the price, one thing we may not get as an assurance is the use of any of these analysis as a guaranteed means to predict right and always make positive outcome with increasing income, everything though work together to make the market favourable and to aligned to the direction of how we've seen it already.

Absolutely right! Not because you use many things in your analysis means you will have great returns in your trading. Analysis and Trading are two different things. The main goal here is to get in line where the market is likely to reprice and as a trader you have to capitulate that move. Trading is simple, and that's also what make's it hard. Its simplicity.

[tjtonmoy]

You are getting it all wrong, I believe you should next time consult the internet first before you correct someone on what you don't know so that you don't expose your ignorance.

Sentimental analysis is what I had explained, what you are explaining might be the sentiment of the market, which is the behaviour of the market at a time, it could be called the bias and trend as well. This could be Buy/Positive, Sell/Negative or Neutral depending on the demand and supply in the market.

This is in no any way related to sentimental analysis, you should know the difference.

No, I have done my research and I am quite right (as far as I know). It's just the same thing but with a little bit of twist. Market sentiments do refer to trend and emotions. But when you collect that data in a text format and analyze them, that becomes Sentimental Analysis.
When market sentiments have effects on your analysis, how can you say that is it not same as that? I know as I explained that they have some difference between them, but when you apply the formula and make decisions based on it, in the end they provide almost the same data (small ups and downs can be noticed).
One is based on other's opinion, and the other one is based on your opinion by converting other's opinions in text data format and analyzing them. So what did I say wrong here?

[death69]

Sentimental analysis? Bah, who cares! My trading style's all about that good ol' coin flip technique. Heads, I'm buying. Tails, I'm selling. Easy peasy, amirite? But for realsies, navigating the trading world is like walking a tightrope in a hurricane. Sure, Technical and Fundamental analysis are the bee's knees, but let's not discount the power of the hive mind and fresh viewpoints.

That's the internet's magic, right? Hooking into a worldwide web of traders, gurus, and keyboard warriors, all dishing out their two cents on the market. It's like a virtual trading circus at your command. But yo, always do your homework and sprinkle some salt on that info buffet. Just 'cause the masses are bullish on some asset doesn't mean it's a slam dunk. When the sun sets, killer trading's all about harmonizing your gut feelings and the market's collective wisdom. Sentimental analysis, coin tosses, or star alignments – whatever floats your boat. Stay sharp, stay disciplined, and stay in the game.

[EarnOnVictor]

The sentimental analysis on the other hand relies on what other traders have analyzed and concluded through Technical and Fundamental analysis and research.

As an investor, you believe in bitcoin four year cycle and also believe in bull market after a massive bear market. If the price of bitcoin reach a very low price after a massive bear market, then use it as a analysis that the bull market is coming. Then what type of analysis is that?

What you just asked is purely sentimental analysis, the bias of people as I'd explained, it doesn't have to be on data alone, it encompasses beyond it. The 4-year cycle is now a Bitcoin tradition, and no true people with Bitcoin understanding will be selling at that time when others are buying. So, anyone following their bias can replicate it even if such doesn't know anything about Bitcoin. It's just doing what the experts in the field are doing or using it to confirm yours before making decisions.

I hope that answered it?

Are you claiming credit for this work? I think you should provide link or source where you got this from.
Apart from data gotten from technical and fundamental analysis, you refuse to talk about the emotion of traders that also arise from same data analysed.
No it doesn't. It doesn't work as perfectly as you want it to be believed.

1. Are you kidding me? Well, if you must know, I wrote everything from my head, and the images gotten online have been referenced.
2. There is no link between emotion and sentimental analysis. It seems you don't even get the gist at all.
3. Who says it worked perfectly? I never said that, I only gave a condition that it works if used rightly. However, I made money through it while I was still struggling in trading, so it's practical, at least for me.

No, I have done my research and I am quite right (as far as I know). It's just the same thing but with a little bit of twist. Market sentiments do refer to trend and emotions. But when you collect that data in a text format and analyze them, that becomes Sentimental Analysis.
When market sentiments have effects on your analysis, how can you say that is it not same as that? I know as I explained that they have some difference between them, but when you apply the formula and make decisions based on it, in the end they provide almost the same data (small ups and downs can be noticed).
One is based on other's opinion, and the other one is based on your opinion by converting other's opinions in text data format and analyzing them. So what did I say wrong here?

Don't get it twisted, you have deviated from your former reply which I corrected and you are now in line (first part), but still using the later part to confuse yourself. Market sentiment will never be the sentimental analysis, it's the real behaviour of the market. While sentimental analysis is knowing what others do so as to replicate it. They are two different things.