Good day forex traders.
How is your trading? I hope you are making pips!
It is a commonly known fact that many retail forex traders usually fail in their trades in their attempts to make money fast in forex. This has lead to schools of thoughts regarding trading against this group of traders. This is also known as contrarian trading or anti retail forex trading. In short, the idea is to bet against these retail traders.
Let us take a look at the current sentiments now and we have improved on our review by adding the sentiment information from another broker!
Source: DUKASCOPY / OANDA
Based on the information above, the following contrarian trading positions may be a possibility. Positions are based on DUKASCOPY / OANDA respectively.
EUR/USD : sell / weak sell
GBP/USD : weak buy / buy
USD/JPY : strong sell / sell
USD/CHF : sell / neutral
EUR/JPY : strong sell / weak sell
GBP/JPY : weak sell / neutral
Area of interest to note :
While we do not have double contrarian signals for any of the currency pairs, we do have the EUR/USD in the sell sector, GBP/USD in the buy sector, USD/JPY in the sell sector and EUR/JPY in the sell sector.
The EUR/USD ‘s sell contrarian signals is a classic example of how retail forex traders love to speculate bottoms. The daily chart of the EUR/USD shows a rather bearish condition but yet buy positions are more than sell. Last two weekends saw forex gaps to the downside and there is no significant change to the economic climate for now.
Do be cautioned that this is not ” one trading signal to rule them all “. Rather the Forex Traders Sentiment Index may be used as a possible confirmation for the trading signals generated by your personal analysis. Furthermore this is only a representation from DUKASCOPY and OANDA and hence may not reflect the entire forex market sentiment.
Folks i started a new forum for us to discuss about forex and i hope everyone joins! It is brand new and hence i will be looking for active helpful folks to join and be possible moderators.
Related Forex Articles from the Koala Forex Training College.