Why and how do we use the SSI in trading? View our video and download the free trading guide here
AUDUSD - The ratio of long to short positions in the AUDUSD stands at 2.08 as 68% of traders are long. Yesterday the ratio was 1.97; 66% of open positions were long. Long positions are 7.8% higher than yesterday and 38.3% above levels seen last week. Short positions are 1.8% higher than yesterday and 26.3% below levels seen last week.
We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the AUDUSD may continue lower. The trading crowd has grown further net-long from yesterday and last week. The combination of current sentiment and recent changes gives a further bearish trading bias.