Signal range. Highlights the range between Buy and Sell signals. It is also possible to remove the button from the indicator panel in the settings. The feature is useful when you need to examine a specific data source in more detail. Enable or disable data providers directly from the indicator window: In this case, you should go to the indicator settings and limit the historical data volume displayed.
We should note that low-capacity computers may not be able to display a high volume of data. The depth of the price history depends on the selected subscription plan. The indicator displays historical data as a chart. If a direct correlation appears between the price and the Ratio indicator, you should close your trade.Īs you can see, the main idea is not to open a trade in the same direction as most retail traders do however, if there is no such a majority, you can open a trade in any direction. Correlation of the price and client positioningĪs long as the price movement inversely correlates with the indicator of open positions, you may hold your trade open. Several sources may stay within the range, but with a value of at least 50% (for Sell trades). The data of most sources have crossed the edge of the signal range. Let’s consider some of the possible options. The Ratios indicator supports many analysis algorithms. The basic idea of how the indicator works is not to open a trade in the same direction as most traders in the market do.īy following this simple principle, you'll increase your chances of making a successful trade.īesides, when you trade against the market majority, you trade with a trend, since most of the trades are always open against the trend. If most of them expect an asset to drop in price (go short), you should consider the Buy opportunities. If most traders go long, you should look for Sell opportunities. Buy zone – the SSI indicator is below 40%. Sell zone – the SSI indicator is above 60%. The image above shows the simplest method of analysis using this indicator. This indicator was created particularly for such a quick assessment of the current sentiment of most traders.
Therefore, trading in the opposite direction from most traders can be profitable. Why Is It Important to Analyze the Ratio of Positions?Īccording to a popular belief, about 95-99% of traders lose their money in the market, i.e., they trade at a loss. Based on these observations, you’ll eventually develop your own patterns of behavior that can be applied in your future trading.
Particularly valuable in the analysis of extreme levels and the indicator readings for the corresponding candlesticks.īy analyzing the history of the ratio of open positions, you can learn how most traders act in various market situations. It allows you to see various manipulative price moves in the past. If you compare this indicator with the CurrentRatio displaying similar data, you’ll see that the Ratios indicator has a number of benefits. It will become your invaluable assistant if you heavily rely on the ratio of client positioning in your analysis. Unlike the CurrentRatio, the data of this indicator is presented as a chart that significantly enhances the efficiency of the analysis. The Difference of This Indicator From the CurrentRatio, And Its Purpose Searching for manipulative price movements.Īlso, the indicator is useful for novice traders, as it allows them to study better the mechanics of the market.Determination of medium and long-term trends.Confirmation of the direction for your future trade.Today, there are numerous sources of the ratio of positions, but we use only the most relevant of them in our indicators and tools. The given indicator provides data on open positions (i.e., client positioning) from 10 sources for 12 Forex pairs (these figures may change over time). The indicator takes into account only currently open trades, while the closed ones don’t affect it. The ratio data comes from several major brokerage companies and some services, such as ForexFactory. The Ratios indicator displays the ratio of buyers’ and sellers’ positions as a chart. Historical data on the buyers and sellers ratio allows you to analyze the key points on the chart in more detail and suggest where the price is going to move next. Track market sentiment dynamics with the Ratios indicator.
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