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 Shortand Long Zones.

USDJPY has again taken pole in the short zone, with all the intervention talk/rumours, I would avoid this pair.

Provided by Pivotfarm - The Home of Support and Resistance Trading

Comments

[Yorick7]

PivotFarm,

Interesting and thanks.  How do you collect this data?

[doolittlegeorge]

and the Dow is HOT out of the gates.  REEKS of inflation.

[Pivotfarm]

Retail traders dont like to follow trends it seems. Most are counter-trend, bottom pickers, smelly finger syndrome abound

[newstreet]

Those Yen numbers are scary looking.

[Pivotfarm]

Yup, been in that region for weeks! The USDCHF has had some consistent retail longs also. Don't be a turd, fade the herd

[primefool]

DailyFX IS the dumb money - quite an uncanny contrarian indicator. No offense!