When to be Contrarian
At Orderflowtrading we talk a lot about sentiment, and we also talk a lot about the fact that FX is probably the most complex asset class to analyze and trade. In this article, we're going to bring forth a possible explanation of why this may be, and propose a time-tested routine on how to stay focused and find your way around FX.
What is “the crowd”?
“The law of an organized, or psychological, crowd is mental unity. The individuals composing the crowd lose their conscious personality under the influence of emotion and are ready to act as one, directed by the low, crowd intelligence.” - T.T. Hoyne
An illustration of “the crowd” from Alessandro Manzoni's The Betrothed.
Take one person, separate him from everyone else, and he will make some solid, logical decisions. Put the same person in a group of highly influential people, and the decision-maker will become the decision-taker: from following his own ideas to following others'. T ...
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