Using futures sentiment for spot trading

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1

Hi guys,

I’ve been looking for ways to gauge sentiment in the market and apart from using the COT charts which is 3 days late, havnt had much luck. Until i read about open interest in the futures market. You can read about it here Forex: Gauging Forex Market Sentiment With Open Interest

Has anyone tried using this in their trading? as some mornings, i wake up not knowing what the market is doing at all, its fair enough using S&R, fibbs, channels and trend lines to hone in on interesting areas where price can turn, but many times these areas are strong one day or for weeks and then get pushed right through.

Heres a chart i’ve found on barchart.com, as you can see on the bottom right hand side - the open interest in shorts increased over the last three days. This week sterling has been over 1.50 and testing to go down below, which the NFP farm rolls helped to push through today.

Would love to hear from people who use this type of analysis and where i can find similar charts on an hourly and 4hr timeframe. Any help would be great.

Open Interest.jpg700×473 31.6 KB

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There’s no such thing as “open interest in shorts”. Open interest is by definition two-sided. An “open” contract has both a long and a short, so OI in and of itself can never be viewed as directionally biased.

Would love to hear from people who use this type of analysis and where i can find similar charts on an hourly and 4hr timeframe. Any help would be great.

OI is only released in arrears (so far as I’ve seen). As such, you won’t find intraday values. A number of brokers, however, do post running long/short balance figures drawn from their customer positions. That might be of some use.