Sid’s Sentiment Algo. How and Why it Works.
In the following video, Sid Norris of Elliott Wave Plus shows the latest revision of his Sentiment Algo, how it was constructed, and how well it has marked several trend changes in the S&P-500 and Gold over the past year.
As you can see from the video, trend changes often occur when large commercial traders and retail traders are positioned completely opposite each other. However, a very wide spread between the positioning of those two groups can sometimes persist for a period of time before the inevitable correction occurs. Many market technicians, including some very famous ones, therefore claim that sentiment is a good warning sign of impending trend change, but state that it cannot be used as a timing mechanism. This video shows an automated trading system that debunks that age-old simplification.
Announcement:
Elliott Wave has added a new level of service: The Premium Plan. Premium Plan subscribers now receive access to nightly executive reports (Monday through Friday). Each nightly report includes the latest date and direction of algorithmic trading signals from up to four carefully crafted systems, including the Sentiment Algo. 18-24 of the most popular trading instruments are covered in every report, allowing subscribers to quickly prioritize among current trading opportunities, and act in a timely fashion.
In addition to Nightly Reports, all Premium Plan subscribers will receive full access to twice-per-week editions of EWP Screenshots, as well as the Weekly “Counts” Webinars and associated recordings.
Summary:
Traders should be aware of the exact sentiment spread between the positioning of large commercial traders vs. retail traders at all times when trading. And they need a way to time entries based on that information. Subscribers to paid services at Elliott Wave Plus are provided with that edge, and a lot more.
Sid Norris
