Hi, I am trying to learn to use the SSI (Speculative Sentiment Indicator) in my trading but I am still not clear.
Could you explain it with a graph?It will be great if you explain to us the complete steps that you follow, for example: The SSI said …
and I entered to market when …Thank you. I’m learning so much.
[B]Power Course Instructor’s Response:[/B]
On May 14th, the SSI report on DailyFXshowed that the USD/CHF ratio had moved above +2.00 which means that we should be bearish and look for sells. We recommend waiting for a reading of above +2 before looking for sells or below -2 before looking for buys. Extreme readings of +3 or -3 are even better. So we call up a 4-hour chart of the USD/CHF on May 14th to look for sells setups. We can see two instances where the MACD line (green line) crossed below the Signal line (black line) which signals a sell. The first one was on May 19th and the second one was on May 28th. Both events were as the USD/CHF SSI reading was above +2. The second signal was as the SSI was above +3. In each case there was additional selling pressure which could have led to profitable trades. Remember that the SSI should be treated as a tool to identify the direction and strength of the trend. We still need to use a strategy to time our entry.