Dynamics in financial markets depend on buying and selling interests. When buyers dominate, appreciation can be expected. When sellers dominate, depreciation can be expected. For this reason, volume data is extremely important for market analysts and often brings additional value to the fundamental and technical analyses performed. Foreign exchange trading is OTC (over the counter), which is why there are [...]


Trading Volumes

The volume reflects the trading activity. For an OTC market such as forex, there is no aggregate volume data. However, existing market sentiment can often be ascertained by looking at other asset classes. The listed and highly liquid equity market is often seen as a point of reference. Increased demand for equities can be expected to lead to their appreciation, [...]


Risk On/Off

In financial markets, there are periods of higher or lower risk tolerance. Various factors can shape risk appetite – macroeconomic, monetary, political, etc. When sentiment is positive, investments are directed towards high-risk assets, leading to their appreciation. In these cases, the market is said to be "risk-on". When sentiment is negative, investments seek more safety and low-risk instruments rise in [...]


COT Report

Every Friday, the CFTC (Commodity Futures Trading Commission) publishes its COT (Commitment of Traders) report, reflecting open interest data in the futures and options market as of Tuesday of the same week. Although the data is released with a delay, this report is viewed with great attention by the investment community. This is primarily due to the reliability and scope [...]


What is Sentiment Analysis

Waves of optimism or pessimism often prevail in financial markets. They last days, weeks, sometimes months. These trends can be triggered by a variety of factors – macroeconomic, political, commercial, military and others. We remember a well-known example of market sentiment from the US-China trade negotiations. Even a positive tweet from President D. Trump, led to a rise in risk [...]

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