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On April 12, local time, the third round of talks between Iran and the United States in Islamabad concluded. Iran described this round as the "last chance" to reach a framework agreement. Since April 11, the two sides had a busy schedule, consulting late into the night, with all parties vying for the temporary ceasefire window and intensifying their maneuvering. However, sharp differences remained on three core issues: control of the Strait of Hormuz, unfreezing overseas assets, and uranium enrichment. Outside the negotiating table, the US military announced mine-clearing operations in the Strait of Hormuz, while the Israeli Prime Minister declared that he would continue to strike Iran and its proxies. With the ceasefire window closing, diplomatic maneuvering and military actions are escalating simultaneously, and the situation in the Middle East is at a crossroads between war and peace.April 12 - According to a statement released by the Iranian government early this morning (April 12) via social media, negotiations with the United States will continue despite some remaining differences. Iranian state television reported that the third round of talks between Iran and the United States concluded earlier, with expert teams from both sides attending and exchanging texts again.Iranian government: Despite some remaining differences, negotiations will continue.According to Iranian state television, Iranian and US delegations are exchanging negotiating texts.April 12th - According to a report by a journalist from the Italian newspaper *La Repubblica*, as of 01:57 Islamabad time (04:57 Beijing time), US-Iran negotiations were still ongoing. The two sides had been staying in the same room at the Serena Hotel for nearly 10 hours, with several breaks (including dinner). Both sides are strongly determined to reach an agreement. A framework has been established covering regional security, humanitarian reconstruction (encompassing various aspects), and the freezing of funds. The sticking point is the Strait of Hormuz. This is precisely where other regional and global players could play a decisive role.

how to trade market sentiment?

Eden

Oct 25, 2021 13:27

Understand the mood of the market

Emotions are the key to understanding financial markets. However, it's tough to make rational decisions based on them. Even if you think you read your emotions or other peoples emotions, you may get lost in trying to comprehend the feelings of the crowd. And the market sentiment is the emotions of millions of traders around the world. 

Every trader knows the importance of emotions. You can see it in market volatility.

The two most dominant emotions

Fear and greed are the most dominant emotions among traders. They are either afraid of losing money, or they want to earn more. Greed is overwhelming at market peaks when the bubble is created.

On the other hand, fear takes over when the market hits bottom. Traders are panicking underestimating the real value of an asset. A savvy investor can see an opportunity for opening a long position in these situations. However, trading against the trend always involves high risk.

How to identify fear or greed? When you see a trend accelerating breaking new resistance levels without any fundamental explanation - no critical information that would justify it - you may expect the greed is in action. The same mechanism works the other way around with fear. If during a downtrends support levels are broken without an apparent reason, the fear may have taken over.

The market sentiment is very easy to read if you take a look back. Everything seems to be visible. Even if you are new to trading, you can easily spot greed taking over just when the bubble is about to burst. However, at the time of the bubble, hardly anyone notices it, even the wisest and most experienced traders.

It's difficult to profit directly from fear or greed taking over. Even if you can read the past and present sentiment correctly, you need to know what the collective traders' mood will be like tomorrow. Without any insider knowledge or ability to influence the prices with your trading volume it's impossible to do it repetitively.

What is the best market sentiment strategy?

The best market sentiment strategy is keeping away from it. If you don't use the most popular technical analysis tools and don't trade reversals, you can avoid the riskiest moves.

Don't chase the sentiment.Doing so you could develop a sustainable trading strategy with the right mixture of technical and fundamental analysis.


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