(binned per thread starter's request) Currency Strength with cont

The only people that stayed on this thread are the intelligent ones. The ones that think for themselves.

Will go out to prove it right or wrong. Test it. Try different things. Collect data on why and why it moves with and against the retail sentiment.

Some move on. Read the first page..... Oh no indicator or EA. Let's move on to the next thread.

I bet you $1000 - You can email Twee and let him know if you want.

If I posted an indicator here or the EA that works on MT4 only it will have 100's of downloads and not one will comment even though this thread is in the bin for a reason. People just want the easy life.
They don't want to do the research. Find an angle from using the myfxbook outlook data or any other data you might have.

hehehehe yes it is. I never mentioned that one... Use the average and it also has the currency data.

I fully respect you for posting that.

So what have forex factory members learnt. Buy the GBP/JPY - and believe it or not its been that data for over a month.

Ok I will carry on because it makes my stalking psycho mad and he has to update his blog.....

(Another quote)
The herd is a pejorative term normally used to describe retail traders. As was explained in our previous analysis of the COT Report, there are mainly three types of players in the market: hedgers, big institutions and small institutions and retail traders. As was also explained, by understanding where retail traders have their positions, new opportunities for contrarian trading open themselves.
(End quote)

(Quote) Use our Free Sentiment Indicator A Sentiment Indicator is a useful tool for forex trading. It looks at the percent of traders who have taken a long or short position in a currency pair. It is a contrarian indicator, and when there is a majority consensus over 60% I look to go in the opposite direction. Since most retail traders lose money over the long run, you want to trade against the herd. When trading forex, sentiment Indicators shouldn't be used alone, but in conjunction with other tools such as VSA, time and technical analysis. (End quote)

(Quote) Oanda does not provide any specific contrarian recommendations in relation to two ratios above, but anyone familiar with Sentiment theory knows that one can use the long-short ratios graph to trade counter the crowds. Whenever the ratio shows that longs greater than 50%, then crowd sentiment is bullish on that pair, and one can take that as sign to be bearish. Whenever the ratio shows that shorts are greater than 50%, then crowd sentiment is bearish on that pair, and one can take that as sign to be bullish. The ratio is more powerful the greater the degree above 50%, such that if longs are showing up as 70% then that means that the crowd is extremely bullish and more likely to be wrong. Moreover the ratio is powerful when it flies against the dominant trend; for instance, if the EUR/JPY is 70% long (extremely bullish), and the dominant trend is down, then it means that the crowds are buying aggressively into Euro/Yen losses, giving the contrarian signal that the pair could hit further lows. (End Quote)

(quote) How to spot "dumb money"
"Dumb money" is where traders are taking the most popular and the most obvious moves. Everyone takes the hottest position, more and more people join and put themselves in a very vulnerable position.
Let's take a look at Forex, a market where individual traders compete with the largest banks to make successful trades. Forex is as susceptible to market sentiment. Both the biggest institutional traders and the smartest individual traders see where the "dumb money" goes. Then when there's the right time, the most prominent players open an opposite position and take the profit.

You can find indicators that show the number of traders having a short or a long position on an instrument. It turns out that the market almost always suddenly goes the other way rapidly cleaning the trading accounts of those who "hang out with the popular kids," that follows the crowd. (End Quote)

Sources.
https://www.youtube.com/watch?reload=9&v=GzP2c1pwxjc
https://www.excelmarkets.com/open-position-ratios-fx-brokerages/
https://www.fxsentimentmarket.com/
https://www.forexlive.com

And one another:

{Quote}The Sentiment Index has the ability to indicate the ebbs and flows of sentiment and keep your fingers on the pulse of the market. The Sentiment Index gauges effective speculative interest in currency pairs and currencies, and therefore can be used as a contrarian indicator.
Example: the Sentiment index can become an additional confirmation filter and thus approve or disapprove of trading signals from any intraday strategies like MACD divergence or MA crossovers. If the strategy gives a BUY signal on EURUSD and the sentiment indicators for EURUSD and EUR are overbought, the trader should avoid entering into position. If the strategy gives a SELL signal on GBPUSD and the sentiment indicator for GBPUSD and GBP are overbought or at least neutral, the probability of a successful trade is increased.{quote}

Thanks Neil.

still in the first pages, looks good reading

The Speculative Sentiment Index (SSI) is one of the most powerful tools at a trader’s disposal. Now you can get the sentiment of your trading peers plotted right on your chart.

Unlike major equities or futures markets, there is no single centralized exchange for Forex trading. Such decentralized activity makes finding uniform open interest data impossible. FXCM as an industry-leading FX broker boasts important FX trading volumes and a significant trader sample. The SSI indicator makes that retail trader positioning data available to help fill this important gap in market information.

With the SSI indicator, you can plot real-time and SSI data on your chart, displaying the buyer-to-seller ratio among FXCM traders. At a glance, you can see where traders were in the market, updating each second. Are there large numbers of buyers or sellers? Are they exiting or entering? As a contrarian indicator, SSI helps you locate potential trading opportunities.

If you use trading station its FREE. Just been told though that if you're in the USA you can't get the data.. Seems strange.

Who said it lags... This is the GBP/JPY SSI from fxcm

With using an indicator. I choose one by random. If SSI is green = Retail buying. You need to wait for a signal to sell. Using the normal setting of stoch indicator. Long term trades.

Directional Movement index setting 2 on daily.

myfxbook community outlook for the same period looks quite differently.

The one shown above is the FXCM SSI (Speculative Sentiment Index) on tradingview platform.

Just move the dates on myfxbook so it lines up.

FXCM retail started selling on the 7th May and so did myfxbook retail clients.

You are going back in history to far.. The data won't change obviously.

Lets see which currency strength gives positive result wrt myfxbook.

USDCHF seems like promising short

"Currencies": [
{
"Name": "CHF",
"ShortPercentage": 86.9,
"LongPercentage": 13.1,
"ShortVolume": 60295.09,
"LongVolume": 9097.13,
"LongPositions": 36524,
"ShortPositions": 121005,
"TotalPositions": 0,
"TotalVolume": 0,
"Strength": 70.35,
"PrevStrength": 75.36
},
{
"Name": "NZD",
"ShortPercentage": 44.6,
"LongPercentage": 55.4,
"ShortVolume": 12484.7,
"LongVolume": 15538.05,
"LongPositions": 58150,
"ShortPositions": 39179,
"TotalPositions": 0,
"TotalVolume": 0,
"Strength": 68.99,
"PrevStrength": 65.08
},
{
"Name": "EUR",
"ShortPercentage": 75.4,
"LongPercentage": 24.6,
"ShortVolume": 181585.33,
"LongVolume": 59209.64,
"LongPositions": 119796,
"ShortPositions": 338674,
"TotalPositions": 0,
"TotalVolume": 0,
"Strength": 51.21,
"PrevStrength": 41.7
},
{
"Name": "AUD",
"ShortPercentage": 41.1,
"LongPercentage": 58.9,
"ShortVolume": 21343.1,
"LongVolume": 30582.44,
"LongPositions": 100771,
"ShortPositions": 61862,
"TotalPositions": 0,
"TotalVolume": 0,
"Strength": 47.91,
"PrevStrength": 49.53
},
{
"Name": "JPY",
"ShortPercentage": 69.7,
"LongPercentage": 30.3,
"ShortVolume": 10522583.79,
"LongVolume": 4572604.74,
"LongPositions": 93944,
"ShortPositions": 200289,
"TotalPositions": 0,
"TotalVolume": 0,
"Strength": 44.33,
"PrevStrength": 69.41
},
{
"Name": "CAD",
"ShortPercentage": 79.4,
"LongPercentage": 20.6,
"ShortVolume": 48498.69,
"LongVolume": 12581.69,
"LongPositions": 47727,
"ShortPositions": 85509,
"TotalPositions": 0,
"TotalVolume": 0,
"Strength": 42.58,
"PrevStrength": 23.44
},
{
"Name": "GBP",
"ShortPercentage": 15.9,
"LongPercentage": 84.1,
"ShortVolume": 18952.18,
"LongVolume": 100165.68,
"LongPositions": 193682,
"ShortPositions": 48716,
"TotalPositions": 0,
"TotalVolume": 0,
"Strength": 19.34,
"PrevStrength": 15.6
},
{
"Name": "USD",
"ShortPercentage": 24.9,
"LongPercentage": 75.1,
"ShortVolume": 79343.77,
"LongVolume": 238899.99,
"LongPositions": 428773,
"ShortPositions": 184133,
"TotalPositions": 0,
"TotalVolume": 0,
"Strength": 5.29,
"PrevStrength": 9.87
}
],

MCQUAK can you disprove these are wrong, fake, made up or otherwise. That if you zoom in on myfxbook the data doesn't change.
The psycho states that Hanover disproved every thing here and you are disproving it.. Yes he is a real nutjob. His name is Francis LOL

I will state sometimes the FXCM SSI I post will be slightly different at times to myfxbook.. Simple answer.

ONE BROKER. FXCM takes the data from THEIR retail clients and myfxbook includes them all. So myfxbook will take the data who have included it from FXCM, OANDA, ICMarkets etc.

I have even included a MT4 to show the MTF RSI2. All data from USDCHF daily.

Well look at the RSI2 strength/weakness... then look at the daily candle for that pair. No pullback today but pure strength and it keeps on going.

Image as posted by maknil 10 hours ago. Now take a look at the daily candle.

Posted by MCQUAK - USDCHF seems like promising short. He has some magic. After posting that it took off. Prove it for yourself. Look at the daily candle.
The USDCHF daily chart is posted above in last post. Now look at the daily chart. Bit of a difference there I would say.

USDCHF works out nicely, NZD was 2nd on my radar.
No I do not have magic, I was just got lucky to read your binned thread .

Wow NZDUSD runs marathon today, so RSI (2, close) works like magic .
So today was with myfxbook retail way and not against (contrarian). As it was told 10 hrs before in currency strength indicator. Since asian session XAU was strong and USD weak, so this might also be to go with myfxbook retail way.
Gr8 Neil,

Thanks
Mak

Albeit NZD itself is not really oversold (50.9/49.1, Currency RSI/2 < 70) to me it is still nice contrarian trade. Look what retail traders have been doing for couple of days now. USD is "catalyst" on this pair (76/24, currency RSI/2 < 30).
But I agree, it's not contrarian per se.

{
"Name": "NZD",
"ShortPercentage": 49.1,
"LongPercentage": 50.9,
"Strength": 68.99,
"PrevStrength": 65.08
},
{
"Name": "USD",
"ShortPercentage": 23.6,
"LongPercentage": 76.4,
"Strength": 5.29,
"PrevStrength": 9.87
}

The NZD/USD is getting there. The mentality of people like Stimpy.. It rises and they start selling and they wonder why 90% of retail traders lose.

hi Mcquack,

which indicator is this



Thanks,
Mak