Thread: Forex sentiment
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Old 01-17-2007, 04:55 PM
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PipDiddy PipDiddy is offline
Pip Magneto
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Join Date: Nov 2006
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COT data is one of most used tools for gauging forex market sentiment. We wrote about a lesson in our school, http://www.babypips.com/school/getti...ith_forex.html

There's also a newsletter available by Market Vane, Market Vane, but subscription is required.

You can also use the Dollar Index (USDX) and look for divergences against the majors. For example, if EUR/USD (inverted), GBP/USD (inverted), USD/JPY or USD/CHF is rising and USDX isn't, it's a good early warning signal of a possible reversal.
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