You have probably heard the expression “trade with the market trend” before. It suggests you should not take a position which is in opposition to the current market direction. If there is an uptrend, you ought to buy. When the sellers are in dominance, you should sell as well.
There is in fact a method of trading that requires trading along with the direction of the trend. There are, however, many more strategies like color based trading or price action. Also, there is a special tool on the Binomo platform which helps to identify what the others are doing in the market at this particular moment.
This widget is called the Majority Opinion and today I will tell you about it.
The Majority opinion overview
The Majority opinion widget is displayed constantly on the right side of the Binomo trading interface, just above the green and red buttons.
The widget presents the percentages of traders who are currently buying and selling. You will see a line in two colors with the percentage values below. The green color represents buyers and the red one – sellers. In the example above, there is a majority of buyers, and that is why the green part of the line is longer than the red one. In case the sellers take the market over, you will notice that the red line lengthens and the green diminishes.
Trading with the Majority opinion on the Binomo platform
In the beginning I mentioned a rule of trading along with the trend. But well, there are two approaches to trading with the Majority opinion widget.
Number one is trading according to what the majority is doing. This is trading along with the trend. When the majority is buying, that is when the green line is longer than the red one, and the percentage value exceeds 50%, you should also open a buy transaction. But when the sellers are in dominance and the red line is longer than the green one with the percentage over 50, you should enter a short trade.
The second approach is altogether different. It requires trading against the trend. The traders from this group believe in conspiracy theories. They perceive brokers as manipulators who control prices on the chart and change them according to their own needs. That is why this second type of traders will act against the crowd.
I suggest not to use the Majority opinion alone, even if there is a vast disproportion between buyers and sellers. It can be used more as a confirmation for other signals.
I recommend double-checking what is going on in the market. Instead of relying only on the Majority opinion widget, use it in a considerate way. Look at the price chart and check if the graph is compatible with what the widget is showing. If the answer is yes, it should be safe to trade along with the trend. But if you get contradictory information from both, you can then try trading against the market.
The Majority opinion is a helpful tool offered on the Binomo platform. You have a unique possibility to sneak peek at what the other traders are doing at this moment. You can use it additionally with some other technique as a confirmation of your assumptions. Whatever approach you will choose, try it first on the Binomo demo account. Tell us about your experience in the comments section which you will find further down the site.
Best of luck!