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Trade Against The Retail Herd 18th Mar
What's new today?
Intervention. For the first time in a decade we're seeing multi-nation intervention to help weaken the Yen, as a beleaguered Japan works to recover from a multi-faceted disaster. Weakening of the Yen eases some of the strain on Japanese exporters, many of whom are being forced to keep factories closed due to power shortages and structural damage after the earthquake. Retail positioning in the Yen has yet to really react to the intervention and remains in its range. We're seeing increasing retail shorts in the EURUSD and GBPUSD which adds further weight to our long view. After a couple of days of strength USDCAD strengthens its position in the short zone and head closer to the strong short zone.
Click image to enlarge
Provided by Pivotfarm via the Technical Analysis blog
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Someone help me with the chart. On the left side at the top it say strong short, but the green band USDCHF indicates strong long. Whats what?
Tells you what the market is doing for each pairing. If you want to go against the herd, you bet against the majority percent... If not you bet like them. or you don't bet.
Green = long; red = short. Always. The left hand says "betting against market is strong short" category. Ie: majority is strong and long on those ones.
Cool chart!