Whether it is speculation in foreign exchange or other investment activities, investors have personal subjective emotions, and these emotions are actually an important indicator that we can refer to in foreign exchange trading, that is, foreign exchange sentiment indicators.
Foreign exchange sentiment indicators mainly include buying and selling ratio, bull and bear market analyst index, sporadic trading scale and so on. Generally speaking, the investors who use the sentiment index more often are the reverse operation investors. The sentiment index can predict the price expectation, and the trader can take the opposite behavior. If every market investor thinks that the price will rise, then the price will no longer have the driving force for knowledge to rise.
Emotion index (arbr) is also known as sentiment intention index, and its abbreviation can also be referred to as arbr. It is composed of two indicators: popularity index [ar] and willingness index [br]. Both ar index and Br index are technical indexes obtained by analyzing historical stock price.
The AR index is the result of comparing the strength development of both sides in the current market situation. It is based on the opening price of the day. Compared with the highest price of the day, the strength index is calculated according to the fixed formula. Br index also reflects the result of the power struggle between the two sides in the current situation. The difference is that it is based on the closing price of the previous day, compared with the highest price and the lowest price of the day, the strength index is calculated according to the fixed formula.
Application of arbr
1. In general, AR index can be used alone, while br index should be used together with AR index in order to play an effective role. Although the index is not suitable to capture the big bottom, but flexible use of the index can grasp the local bottom, especially suitable for rebound.
2. Br < AR and Br < 100 can be considered to buy on bargain.
3. When br ＜ AR and AR ＜ 50, it is a buy signal; Brar turns to br
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