We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Gold
Mixed
GBP/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bearish
More View more
Real Time News
  • The US Dollar is pressured as rising coronavirus cases fail to dent 2021 GDP bets. Could the Singapore Dollar, Indonesian Rupiah, Philippine Peso and Malaysian Ringgit rise? Find out from @ddubrovskyFX here:https://t.co/u1qhaIGGoC https://t.co/O2i6DZLkIB
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: -0.02% Silver: -0.02% Oil - US Crude: -0.36% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/8fnXlqvZEz
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.07% 🇨🇭CHF: 0.05% 🇬🇧GBP: 0.01% 🇯🇵JPY: -0.06% 🇦🇺AUD: -0.09% 🇳🇿NZD: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/T8ma15KmYS
  • RT @DanielGMoss: #JacindaArdern’s balancing act with China may fuel further gains for the trade-sensitive $NZD $AUDNZD Head and Shoulders…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.85%, while traders in US 500 are at opposite extremes with 73.24%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/tUOYKl0cyo
  • Okay so what's China CPI today? Its changed like 3 times on Bloomberg
  • Since the stock market bottomed back in March, the S&P 500 has gone on to climb over 40%. Get your S&P500 market update from @FxWestwater here: https://t.co/Ff7iHAUObN https://t.co/bLO6xva4Fw
  • 🇦🇺 Investment Lending for Homes (MAY) Actual: -15.6% Previous: -4.2% https://www.dailyfx.com/economic-calendar#2020-07-09
  • 🇦🇺 Home Loans MoM (MAY) Actual: -10.2% Previous: -5.0% https://www.dailyfx.com/economic-calendar#2020-07-09
  • 🇨🇳 Inflation Rate MoM (JUN) Actual: -0.1% Expected: 0% Previous: -0.8% https://www.dailyfx.com/economic-calendar#2020-07-09
How to Read SSI

How to Read SSI

2013-06-10 15:57:00
Walker England, Forex Trading Instructor
Share:

Article Summary: SSI is a proprietary sentiment tool offered by FXCM. Learn the basics of how to read and use SSI in your Forex trading.

Regardless of your trading experience or trading style FXCM and DailyFX.com have many resources available to help get you started in the world of Forex. 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.

Below we can see the current SSI ratios posted on DailyFX.com. If clients are net short a currency pair SSI will be negative, and if clients are net long the number will be positive. As of today, we can see that SSI for the AUDUSD is currently set at +5.01. This ratio means that trader’s positions are net long at a rate over 5 to 1 when compared to all open selling interest.

So now that we know how to read SSI, let’s discuss how these numbers can be used in our trading.

Learn Forex – Current SSI Readings

How_to_Read_SSI_body_Gold_Prices_Look_Vulnerable_as_Crowds_Buy_Declines.png, How to Read SSI

Trading SSI

SSI is a strong trading tool due to the nature of most traders. Traditionally most Forex traders look to pinpoint a market top or bottom while fading market trends. That means that more often than not, we see most traders place sell orders into extended rallies, and buy into market declines. Because of this, SSI is often considered a contrarian indicator. Savvy traders that review SSI can then proceed to look for busy signals when SSI is net long or buy when SSI net short for a specific currency pair. Let’s take a look at an example of SSI at work.

Below we can see a prime example of SSI at work again on the AUDUSD. Going back to the start of April, we can see that positioning was continually net long. However when compared to the price graph, we can see that the pair has fallen over 1000 pips for the same time period! The current reading of SSI stands at 5.01. As more traders continue to buy into this market decline, SSI data suggests that the AUDUSD may continue to print lower lows.

Learn Forex – Current AUDUSD SSI

How_to_Read_SSI_body_Picture_2.png, How to Read SSI

Automated SSI Trading

For those that are seeking a trading strategy using SSI, FXCM offers a variety of automated trading applications. Whether you trade trends, breakouts or momentum there is a system available for all market conditions. The easiest way to get started trading a SSI system is through our Mirror Trader Platform (Free with an FXCM Account).

Using the Mirror Traders software, Traders can select from a variety of automated strategies. This includes SSI strategies provided by DailyFX which includes the Momentum 2 and Breakout 2, and Tidal Wave strategies. These strategies can be applied at any time, while allowing traders the ability to customize position size and currency pair selection.

Learn Forex – SSI & Mirror Trader

How_to_Read_SSI_body_Picture_1.png, How to Read SSI

---Written by Walker England, Trading Instructor

To contact Walker, emailinstructor@dailyfx.com. Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list,CLICK HEREand enter in your email information

Are you looking for a scalping strategy for the FOREX market? Sign up for our free CCI trading course! CCI Training Course

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.