Daily FX Retail Trader Contrarian Analysis 22nd Oct

Retail traders are notoriously wrong at picking market direction/tops and bottoms. Most retail traders very naturally seem to adopt a counter-trend stance and this offers very accurate signals for individuals looking to trade against this group. This daily report is designed to help traders focus their efforts on higher probability pairs.

So what are the signals?

Strong Short 66% Retail Longs

Short 60% Retail Longs

Long 60% Retail Shorts

Strong Long 66% Retail Shorts

We are looking for 60%+ (Ideally for best opportunities 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 Strong Short and Strong Long areas.

What’s New Today? The EURUSD and GBPUSD have returned to more neutral territory after some selling in yesterdays session. Since this report was launched in mid Sept USDJPY has stayed firmly in the Strong Short area in that time it has had 16 down days compared to 6 up days.

Provided by Pivotfarm - The Home of Support and Resistance Trading

Comments

[Vampyroteuthis ...]

I think this strategy is good with stocks, but with FX markets it may not work too well with the fact the FX investors are not ones in charge. Money flows between countries as risk on/off movements into equity and bond markets. Just my 2 cents.