So I've been doing some additional thinking on this as I hate not understanding the full depth and sourcing for what I'm trading.
FXCM has active trader which shows up to 10 levels of market depth. At any one moment, you can see how much buying or selling pressure is at a particular price.
Since the information is coming from a market maker, one can assume that volume seen is coming from retail positions.
Thus this allows us to take a contrarian approach when the ratio of buyers to sellers becomes greater than say 2 to 1 over a specified time period.
Am I on the right track?
FXCM has active trader which shows up to 10 levels of market depth. At any one moment, you can see how much buying or selling pressure is at a particular price.
Since the information is coming from a market maker, one can assume that volume seen is coming from retail positions.
Thus this allows us to take a contrarian approach when the ratio of buyers to sellers becomes greater than say 2 to 1 over a specified time period.
Am I on the right track?