Part I. Market Sentiment and COT Report. Commander in Pips: Well-well, so step-by-step we’ve reached market sentiment analysis part. Since this is just the first part of this chapter, let’s spend some time and discover what market sentiment is. We know that every trader has his or her own view of the market. One may say – “Hey, that’s a miserable plunge, we will go lower, I’m extremely bearish.” Other trader will take a look at the same picture will say – “well, that’s just a deep retracement, all other stuff looks nice and I’m bullish”. Much will depend not only from type of analysis and time frame that they apply but also from perception, personality, each trader’s own vision and interpretation of the same indicators and signals. No doubt that everyone could explain you why market behaves precisely as it does, despite the fact that these explanations could be founded on absolutely different arguments and reasons. But how do traders express their vision, how do they realize them on market? Pipruit: Well, by their positions, I suppose, that they have opened already… Commander in Pips: … and? Pipruit: Oh, and with orders that they have placed by intention to open some position in the nearest future. Commander in Pips: Absolutely. Also we know already that there is not some absolute trading approach, that could be based on something fundamental and that is ruled by some fundamental forces of the market. All trading approaches are based on some probability. This probability of success could be greater than 50%, when this trading system is acceptable or less that 50% in opposite case.