Open positions of forex traders online
When trading on the Forex currency market, it is quite important to know the mood that most traders have formed.
Namely, the number of open positions on Forex to buy and sell for the trading instrument you are interested in.
Open positions of Forex traders allow you to see online the ratio of short and long transactions for each currency pair; this information can be used by some trading strategies.
It is displayed using the informer, which you can see below; the data is presented for one of the largest brokers on the foreign exchange market.
Buy and sell orders by currency pair:
How to use online information about open positions of forex traders
Using open positions of Forex traders in real trading is not particularly difficult. The information itself is quite valuable and makes it possible to understand the current prevailing market sentiment:
The presented online informer shows, in the context of currency pairs, the ratio between buy and sell transactions that were opened by the broker's clients. Information is presented on more than 30 assets traded on Forex.
The informer data for traders' positions on Forex is depicted as filled lines of two colors, green displays the number of buy orders opened by traders, and red, respectively, the number of sell orders.
This update occurs constantly online every 60 seconds, thanks to this you can observe how the mood of market participants changes.
From the available readings, two conclusions can be drawn about the situation:
• Not long ago, a trend reversal occurred and the number of transactions in the direction of the new trend begins to grow - we open a position along the trend. Confirmation of the presence of the signal that caused the beginning of a new trend is required; this confirmation can be found in the published news.
• The reversal occurred a long time ago, the number of open orders of traders along the trend significantly exceeds the number of orders against it - we wait for the first signals for a reversal and open a new deal in the direction of the new trend.
As practice shows, the presented informer is a fairly effective tool when used in various strategies.
At the same time, I would like to note that the opinion of the crowd is not always correct; therefore, to increase the efficiency of the analysis, you can add the Stohastik indicator . The "Traders' Open Positions" informer itself is more of a guideline than a source of signals to open new transactions.