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 see if we can derive any useful information from it.
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 : neutral / neutral
GBP/USD : weak sell / weak sell
USD/JPY : strong sell / strong sell
USD/CHF : sell / neutral
EUR/JPY : sell / sell
GBP/JPY : strong sell / sell
Area of interest to note :
I did not color code the changes as it has been sometime since the last update. Overall we can see strong colreations between the two brokers. This suggest possible market wide sentiments. We mainly see the USD/JPY, EUR/JPY, GBP/JPY, GBP/USD in various stages of sell contratrian signals. This is aligned with the risk aversion currently experienced in the markets.
Surprisingly, the EUR/USD remains neutral. This means that almost equal number of buyers and sellers are engaged for this currency pair. Seems like half of the retail forex traders are following the bearish trend while somewhat half are still holding to their longs.
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.
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