FXCM SSI Ratio and Indicator

[scottypip]

I'm quite new to FX trading, and I have been hearing some buzz about FXCM's SSI ratio and indicator. I have read that this

Does anyone use this? If so, how accurate is it? And if I don't trade on FXCM's platform how would I get this indicator?

Thanks in advance!

Best of Luck

-Scottypip

 

[Jason Rogers]

I'm quite new to FX trading, and I have been hearing some buzz about FXCM's SSI ratio and indicator. I have read that this

Does anyone use this? If so, how accurate is it? And if I don't trade on FXCM's platform how would I get this indicator?

Thanks in advance!

Best of Luck

-Scottypip

Hi Scotty,

The SSI data is made available in two ways.

There's a free weekly SSI report released by DailyFX every Thursday. Here's where you can find it http://www.dailyfx.com/technical_analysis/sentiment/. DailyFX also updates SSI twice a day in DailyFX+ but you need a live account with FXCM to access it. Here's the login page https://plus.dailyfx.com/login/loginForm.jsp.

SSI measures long versus short positioning amongst FXCM's retail traders, and uses that as a contrarian indicator. For example, if the majority of traders are long USD/JPY, SSI is giving a signal to sell. The reason why it's contrarian is because retail traders like to fade the market trend (pick tops and bottoms). Picking tops and bottoms can turn out ok when the market is ranging (moving sideways) but can quickly turn disastrous if the market starts to trend moving further and further against the position.

-Jason