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When trading, traders express this view in whatever trade he takes.
But sometimes, no matter how convinced a trader is that the markets will move in a particular direction, and no matter how pretty all the trend lines line up, the trader may still end up losing.
A forex trader must realize that the overall market is a combination of all the views, ideas, and opinions of all the participants in the market. That’s right… EVERYONE.
This combined feeling that market participants have is what we call market sentiment.
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