Had a look at the IG Client Sentiment matrix on DailyFX.
Interesting. DailyFX say they habitually take the opposite direction to what the majority of IG’s clients are doing.
e.g. 66% of these clients are short AUD/USD: DailyFX are Bullish.
Has anybody been using this information for any time? Is it useful?
[quote=“tommor, post:1, topic:112611”]Has anybody been using this information for any time? Is it useful?
[/quote]
The broker guys on the 16 candles thread & one or two of their colleagues on the original technical templates threads have been extoling the virtues of incorporating the use of (varied) sentiment gauges for years. And yes, it’s certainly valid information within retail houses, especially when assessing the merits of triggering entries in an established momentum cycle, usually via pullbacks, when the majority of punters are looking to build & execute contrary (reversal) positions.
Retailers (still) love to pick tops & bottoms & regale themselves with pretty candle patterns & herds tend to follow herds, which is reflected in the sentiment positions, often at perceived market extremes
Turns out Oanda offer a free sentiment indicator matrix, updated every 20 minutes on their website. Its pretty good and more comprehensive than DailyFX’s: they currently agree direction on all but one pair.
For what its worth, I have open positions in 3 pairs listed on the Oanda matrix: I’m taking the opposite direction in all three to the majority of their clients with trades open.
Looks to me like Oanda’s clients have only two rules - buy the US and sell the EUR. Needless to say I am long EUR and hoping to get longer and short USD and hoping to get shorter. They all seem to be banking on dramatic hero-making reversals.
I looked into trading with the SSI and watched it for ages, Just like everything else I have found with forex when it works it works, When it doesn’t it doesn’t
So for what its worth the crowd is pushing the price. The price expresses the current market sentiment to the penny. So when we use any indicator it is based off the market sentiment.
Anyway sites like investing.com, boarchrt.com etc. hove bunched indicators into time frames, I find this very useful and while not gospel they tend to be quite accurate.