Trade Against The 90% That Lose Money 1st Nov

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? EURJPY makes a jump into the Short zone today, with long positioning strengthening in the GBPJPY, the currency pair today entered the Strong Short zone. EURUSD has become more neutral.

Provided by Pivotfarm - The Home of Support and Resistance Trading

Comments

[monkeyfaction]

It would be interesting to drill down further into the numbers regarding USD/JPY.

85% of retail are long USD/JPY but how many retail USD/JPY trades currently open compared to the long term average?

Are retail traders just avoiding this pair to avoid being caught between a strong downtrend and possible BOJ intervention?

I wouldn't want to be short USD/JPY with any kind of leverage at the moment. If the BOJ decide to go all in, or QE2 turns out to be a dud the pair could move 500 pips in a few seconds.

[nscholten]

Not a currency trader.

Just to clarify with regard to the pairings, you either long or short the currency on the left against the currency on the right?

[margaris]

if you go long USD/JPY it means you buy USD and sell JPY the same time.