DailyFX question

Beginner Questions
1

I’m looking at the DailyFX website and where it says the Speculative Sentiment Index, it shows a % of shorts vs longs and the outlook.

So in this image

228c6373d6162150880193aa7583c873.jpg700×489 44.7 KB

it says outlook is bullish and 57% of trades are short. Am I reading this correctly?

and in this image

97b692de21f316142e1343322dcbfbde.jpg700×489 46.5 KB

it says outlook is bearish and 26% of trades are short?

2

Yes, you read it correctly. But it is an indication. As there is not one central market this information can apply to a number of OTC FX markets, but not all of them.