How the SSI Indicator Works in Forex Trading

David Rodriguez of arifmudipriyatno.ga demonstrates how a remarkable shift in retail FX trader sentiment helped confirm that this currency set a lasting low through last week and how a continued move in both price and sentiment points to further gains. GBP/USD—A remarkable shift in retail FX trader.

Watch how to download trading robots for free. So if most people are buying a pair SSI is positive , we only look for selling opportunities. Although traders are further net-long than last week, the combination of current sentiment and recent changes gives us a US bullish contrarian trading bias.

SSA indicator

The library of technical indicators for MetaTrader 4 developed in MQL4. Regardless of the market (forex, securities or commodity market), indicators help to represent quotes in an accessible form for easy perception.

The number of traders net-long is 0. Be sure to check out our Bitcoin Trading Guide if you're new to cryptocurrencies! We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Bitcoin prices may continue to fall.

Recent changes in sentiment warn that the current Bitcoin price trend may soon reverse higher despite the fact traders remain net-long. In fact, traders have remained net-short since May 03 when US traded near The percentage of traders net-long is now its lowest since Sep 04 when US traded near The number of traders net-long is 8. We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests US prices may continue to rise.

Although traders are further net-long than last week, the combination of current sentiment and recent changes gives us a US bullish contrarian trading bias.

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Panel View Table View. Yahoo Finance's Morning Brief is delivered every weekday by 6: This tool has been adapted for Forex currency pairs and CFD contracts and its primary use is to confirm market trends.

Once you have familiarized yourself with SSI , it is a great component to work into any existing scalping strategy. Today we will work to get up to speed with this resource, while looking at its uses in day trading. First, SSI is a calculated ratio that gives us a snapshot of trader positioning while giving hints on market direction.

SSI reveals trader positioning by determining if they are net long or short a currency pair, and if so by how much. The higher this number becomes, the more extreme SSI is considered. As a scalper the number one priority is to find the Trend. Traditionally most Forex traders look to pinpoint a market top or bottom while fading market trends. That means that more often than not, we see most traders place sell orders into extended rallies, and buy into market declines.

Because of this, SSI is often considered a contrarian indicator. Going back to the start of April, we can see that positioning was continually net long.

However when compared to the price graph, we can see that the pair has fallen over pips for the same time period! The current reading of SSI stands at 5. Whether you trade trends, breakouts or momentum there is a system available for all market conditions.