What is the SSI indicator?
The SSI is a unique indicator provided by FXCM that gives traders an inside window into how the market is feeling and behaving in relation to a particular currency pair. The index is considered a contrarian indicator that is most valuable when judging how to trade against the rest of the market.
What is SSI in forex trading?
SSI (Speculative Sentiment Index) is a proprietary tool offered to FXCM clients that can be worked in to virtually any trading strategy. Essentially SSI is a ratio that gives us a picture of trader positioning. SSI reveals trader positioning by determining if they are net long or short, and if so by how much.
How do you trade with sentiment?
There are two possible strategies for using the market sentiment. You can go with the current and try to join the crowd or trade against the sentiment. The first strategy would include tactics involving the Fibonacci retracement tool, that can help traders profit from local price corrections.
What does sentiment mean in stocks?
Market sentiment
Market sentiment refers to the overall consensus about a stock or the stock market as a whole. Market sentiment is bullish when prices are rising. Market sentiment is bearish when prices are falling.
How do you read a sentiment analysis in forex?
Sentiment indicators show the percentage, or raw data, of how many trades or traders have taken a particular position in a currency pair. For example, assume there are 100 traders trading a currency pair; if 60 of them are long and 40 are short, then 60% of traders are long on the currency pair.
What is speculative sentiment?
on the demand from uninformed traders and I define speculation sentiment as a gambling-like, uninformed belief about the future direction of the market. Similar to the beliefs of the gambler.
What is a standard settlement instruction?
Standard Settlement Instructions (SSI’s), refer to a Legal Entities Settlement Instruction for which key information remains the same from one cash settlement to another (i.e., bank, account number and account name), with only the amount and value date modified.
What is a good sentiment score?
The score indicates how negative or positive the overall text analyzed is. Anything below a score of -0.05 we tag as negative and anything above 0.05 we tag as positive. Anything in between inclusively, we tag as neutral.
Does sentiment analysis work in forex?
Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. While applying sound technical and fundamental analyses is key, having an additional feel for the market consensus can add depth to a trader’s view of forex and other markets.
What is the best sentiment indicator?
Open Interest. Open Interest refers to the total number of futures contracts or options that are held by traders at any particular moment. Let me tell you Open interest is known to be one of the best sentiment indicators and also for understanding the reliability of the price movements.
What are the 3 types of analysis in forex?
This article explores the three most common forex analysis techniques: Fundamental, technical and sentiment analysis, and how they help to shape a trading strategy.
Does sentiment analysis work forex?
Sentiment analysis is used to gauge how other traders feel, whether it’s about the overall currency market or about a particular currency pair. The forex markets do not simply reflect all of the information out there because traders will all just act the same way. Of course, that isn’t how things work.
What is SSI indicator in trading?
SSI indicator indicate buyers and seller whether, they are entering or exiting trade and their position in the market within seconds. A positive proportion specifies more buyers are active than sellers, while a negative proportion specifies that more sellers are active in the market.
How to display the SSI on the MT4 terminal?
Today I have prepared for you an indicator that displays the SSI (Speculative Sentiment Index) directly on the chart of the MT4 terminal. You have to make an indicator (graph) that shows the change in the ssi over time. Then it will make (more) sense.
Where can I find the SSI indicator?
The SSI indicator is available on Trading Station Web under the ‘Sentiment’ tab. If you prefer to download it for Trading Station desktop click here, or here if you are a MT4 user. Please note that the SSI for Trading Station desktop is free, but it does carry a cost for MT4 due to it being a 3rd party indicator.
What is SSI (market sentiment)?
SSI or market sentiment is the buyer-to-seller ratio that has developed in the market at the moment. It can be represented as a percentage of the number of trades or their lots. Please note that already closed trades do not affect this indicator.