Key Features.
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This powerful contrarian indicator helps you locate trading opportunities by allowing you to gauge trader positioning and sentiment in the forex market. Lite indicator displays the data on the market sentiment directly on the chart of the MT4 terminal. Once the indicator is installed, you will see the histogram showing the percentage ratio of bulls and bears in the market.
This free Real Volume is a default indicator that can be added to your charts. Understand directional bias and how this contrarian indicator works.
How the SSI Indicator Works in Forex Trading
Watch our tutorial to find out more. The bar graph below will highlight the positioning statement from the SSI update we had looked at above. This means that for every one trader holding a long position in the pair, there are 1. Readings that are below zero indicate a net short position in the pair, while readings above zero indicate that traders are net long in the pair.
If a trader can observe a net long position in the USDCAD, this can be seen as a sign that short positions may be optimal. The 4.
The Speculative Sentiment Index
And to do this — they will need to sell. And, of course, the traders that are short in the pair will need to do the same, and to close their short positions, they will need to buy.
So — at some point in the future, we can see 4. This can create more selling pressure than buying pressure, and traders looking to take advantage of this selling pressure can look to open short positions with the indicator. Traders should still look to utilize strong risk management in their trades, even with the assistance of SSI.
For traders that want to institute SSI in their trading, it may be advisable to first locate strong trends, and then to filter with the SSI indicator.