Forex traders' open positions online
When trading on the Forex market, it is quite important to know the mood that most traders have formed.
Specifically, the number of open buy and sell positions on Forex for the trading instrument you're interested in.
Open positions of Forex traders allow you to see the ratio of short and long trades for each currency pair online, information that 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 pairs:
How to Use Online Information on Forex Traders' Open Positions
Using open positions of Forex traders in live trading is not particularly difficult. The information itself is quite valuable and allows one to understand the current market sentiment:
This online informer displays the ratio of buy and sell trades opened by the broker's clients across currency pairs. Information is provided for over 30 assets traded on the Forex market.
The Forex trader position informer data is displayed as filled lines of two colors: green represents the number of open buy orders, and red represents the number of open sell orders.
This data is updated constantly online every 60 seconds, allowing you to observe how market participants' moods change.
Based on the available data, two conclusions can be drawn about the situation:
• A trend reversal has recently occurred and the number of trades in the direction of the new trend is beginning to increase – open a position in line with the trend. Confirmation of the signal that triggered the start of the new trend is required; this confirmation can be found in the released news.
• The reversal occurred a long time ago, the number of open orders of traders in line with 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 informant is a rather effective tool when used in various strategies.
It's worth noting that crowd sentiment isn't always correct, so to increase the effectiveness of your analysis, you can add the Stohastic indicator . The "Traders' Open Positions" indicator itself is more of a guide than a source of signals for opening new trades.
