Daily FX Retail Trader Contrarian Analysis

Retail Traders as a herd are
wrong...most of the time (sorry guys its true).

This daily report is
designed to help traders find opportunities to trade against this group. The
premise is very simple we are looking for 66% of retail traders to be trading
either long or short a currency pair, we then look for opportunities to fade
(trade against) this group. For example if 72.99% of traders are long the
USD/CHF we look for opportunities to short that pair.

The pairs that we feel offer
the highest opportunity for success are described in the Short and Long Zones.

No major changes from
yesterday other than retail traders slightly increasing their long positions in
the USDJPY. (They have held this bias for months now!).

Pivotfarm - The Home of
Support and Resistance Trading

Comments

[Orly]

Watch for a longer-term trade in the CHFJYP, short to 78.6.

[jason4u]

i wonder if they are using aggregate market retail trader positions to do this analysis? If not it may be very misleading. Good post