While this may be true in some cases, IG’s index may conclude the trading bias as ‘mixed’ based on changes between the longs and shorts from the last day. These findings reflect the magnitude to which traders in that market/s feel optimistic or pessimistic, i.e., their sentiment. One of the good qualities of IG’s sentiment tool is they provide a concluded directional bias which also accounts for changes to the previous day.
The stock is down more than 60% this year, battered by client pullbacks and AI-driven disruptions, making Monday’s spurt a rare bright spot. First off, the data is in real-time, which means traders can make more timely decisions. There are many ways that traders can measure sentiment in the FX market, and of course, there isnt a one-size-fits-all method for analyzing it. The Fear and Greed Index (FGI) is a comprehensive tool for analyzing cryptocurrency sentiment.
Conclusion: track market sentiment as part of your wider analysis
- Many customers report feeling that IG prioritizes acquiring new customers over supporting existing ones, with particular frustration around fund withdrawal processes and unexpected account management issues.
- The two most well-known are open interest in options, which largely applies to stocks, and the Commitment of Traders Report (CoT).
- Each module is given a specific weight based on its statistical impact on the market.
- One of the good qualities of IG’s sentiment tool is they provide a concluded directional bias which also accounts for changes to the previous day.
Additionally, a section of its website outlines the company’s corporate structure, as well as its status with different regulators. The two most well-known are open interest in options, which largely applies to stocks, and the Commitment of Traders Report (CoT). Our client sentiment looks at the overall positioning of IG clients in a market, in other words how many are long and how many are short. A large part of using market sentiment to trade is being able to read when a market is about to turn, which is where fear and greed come into play. Evaluating market sentiment as part of your trading strategy is only worthwhile if you can use it to get ahead of the game and can make trades before the rest of the market.
EUR/USD, AUD/USD eagerly await US consumer price index (CPI) data while EUR/GBP recovers
While sentiment is a crucial factor in market movements, it should be just one aspect of a broader trading strategy. Combining sentiment analysis with solid technical and fundamental analysis typically yields the best results. IG Client Sentiment, or IG CS, uses data derived from IG retail traders with live positions.
Market navigator: week of 3 November 2025
The retail sector also commands attention, with Home Depot and Walmart reporting results that should clarify whether US consumer resilience can withstand persistent tariff-driven cost pressures. Japan’s economic health also commands attention as third-quarter gross domestic product (GDP) figures are expected to reveal the economy’s first contraction in six quarters. As the cryptocurrency breached 100,000 and demonstrates limited recovery signals, new investor interest remains subdued while existing long-term holders are reducing exposures or crystallising profits approaching year-end.
- In any tradable financial market, the two most common strands of analysis are technical and fundamental.
- Commissions on shares vary from region to region, while the overnight funding rate varies depending on asset class.
- We are assessing Bitcoin’s volatility and maximum drawdowns, comparing these metrics with the average values from the past 30 and 90 days.
- ‘In the short run the market is a voting machine, but in the long run it is a weighing machine,’ – Benjamin Graham, renowned investor regarded as the father of value investing.
TOOLS
Traders will find a chart and a quick summary of recent and overall sentiment numbers. Returning to the NZD/USD example, after realizing that most traders are long NZD/USD, one could reasonably assume that this must be the correct trade to place. At this stage, we know which market to trade and know the direction to trade it but there are further factors to consider and these are explored in the remainder of the article. The aggregated reviews reveal a significantly polarized customer experience with IG.com. The trading platform itself receives high marks for its comprehensive features, reliability, and ease of use, with customers appreciating the wide range of trading instruments, competitive spreads, and professional tools. However, the customer experience is severely undermined by systematic problems including lengthy wait times, withdrawal complications, account verification delays, and inconsistent service quality.
Sentiment Indicators: Using IG Client Sentiment
For traders looking for the most effective technical indicators, it is important to consider the objectives of the trading strategy as well as the current market condition. For individuals trading individual stocks, it is often beneficial to apply indicators to the stock index in which that share belongs to get a holistic view of the larger market as a whole. The tool is a graphical representation of client positioning or a percentage of how many clients are net-long (buying) versus net short (selling) on a particular pair. The primary avenue for determining sentiment is using an indicator showing how many traders are long versus how many are short on a specific pair. The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. IG also highlights on its website exactly how it makes its money, alleviating concerns that the online broker could potentially trade against its clients.
For a beginning trader, understanding the analysis process, and how it can help predict market trends, can be challenging and daunting. This analysis is the study of price movements in a market, in which operators make use of technical patterns and indicators to predict future market trends. One of the key things is looking for extremes between the two figures; the larger, the better. The two arrows which trace the price direction and the blue line at the bottom (representing the number of net-long clients) show the disparity. You can zoom in to any market where IG provides a more detailed report, and this is where users compare the actual market direction and how it correlates to the changes in longs and shorts. Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.
Pi Network (PI) is up 11% so far this week, underpinned by its whitepaper on the Market in Crypto-Assets (MiCA) regulations for the European Union markets. The technical outlook remains bullish as PI exceeds the long-standing dynamic resistance, the 50-day Exponential Moving Average, preparing We collect and tally posts with various hashtags for each coin from Twitter (X) and monitor the speed and volume of interactions within certain time frames.
Such large changes could indicate a reversal in overall sentiment and the market itself. Traders should look for divergences between sentiment and price action (movement in a security’s price), as these can often signal potential reversals. Our commitment to providing unbiased, comprehensive reviews of forex brokers is rooted in extensive research and expert analysis.
To their detriment, retail traders tend to focus more on catching reversals in strong trending markets. Using IG’s Client Sentiment tool as a contrarian indicator can be viewed as ‘fading the crowd’ – in other words taking the opposite direction of retail traders. All of this is made possible with IG’s real-time data on the most frequently traded markets, which can be used in any sentiment trading strategy. IG Client Sentiment is viewed as ‘fading the crowd’ or going in the opposite direction of retail traders. All of this is made possible with IG’s accurate, real-time data on the most frequently traded markets – which can be used in any sentiment trading strategy.
There is also a fee for guaranteed stops (available to clients outside of the U.S.) that also depends on the underlying asset. IG offers competitive fees globally, with spreads as low as 0.6 pips for major FX pairs, 0.8 on leading indices, and 0.1 on commodities. The “Refresh” button on this tool refreshes the data, providing you with the latest information for FX Sentiment indicator. In this tool, we have aggregated data from multiple sources to enhance the overall effectiveness and potential output. While IG Client Sentiment is a useful tool, it doesn’t mean that it’s perfectly predictive. Traders should ig market sentiment still look to utilize strong risk management in their trades, even with the assistance of IG CS.
Exchange-traded fund (ETF) flow data from Coinglass reveals net outflows exceeding US$2.3 billion through November. Bitcoin’s correction extended into its third consecutive week, declining nearly 10% to just below 95,000 as market participants reassess the likelihood of a December rate reduction and overall risk appetite. Following a 60% surge in Singles’ Day sales, JD.com exceeded estimates with Q3 revenue advancing 15%, supported by government consumption subsidies. Net income declined 55% YoY to RMB5.3 billion, representing a smaller decrease than anticipated. Alibaba, another significant Chinese technology enterprise, will announce financial results on 25 November.
Advanced algorithmic traders can connect their solutions to the ActivTrades and IG infrastructure via API, and both brokers maintain dedicated institutional divisions. In general, IG does an excellent job of providing existing and prospective users with key information, highlighting the company’s commitment to excellent customer service. IG stands out for being very transparent about its fee structure, making it easy to find how much you can expect to be charged for trading different financial products on the platform. Commissions on shares vary from region to region, while the overnight funding rate varies depending on asset class. Red readings indicate net short positions in a currency pair, while readings in blue show that traders are net long the pair. The effectiveness of the IG Client Sentiment indicator can also be seen in the profitability numbers of retail traders.
Another way of viewing the degree of sentiment is to consider the ratio of long to short traders. It is widely considered that readings greater than 2 indicate a meaningful bias among retail traders as this translates to at least 66.6% of traders net-long/short. Before implementing a sentiment trading strategy, it’s useful to understand why client sentiment is regarded as a contrarian signal. Essentially, the tool makes it easy to see where the majority of IG traders are positioned, i.e. long vs short. Traders should consider bullish directional bias until there is a cross between the two.
Discover the range of markets and learn how they work – with IG Academy’s online course. However, it’s important to approach sentiment analysis with a balanced perspective, using it as one of many tools in the trader’s toolkit rather than relying on it exclusively.
Markets are increasingly concerned that the Fed may postpone its next interest rate reduction due to incomplete economic data. Fed officials remain divided regarding whether inflation or employment assumes priority within the dual mandate. Current bond futures pricing indicates the probability of a December rate cut has declined further below 50%, intensifying pressure on equity markets.