As part of a running series, I’m interested to see whether there is any value in closely watching the positions of retail traders, in Forex Markets.
Taken from http://www.myfxbook.com/community/outlook/GBPUSD in this instance, this evening I’m openly wondering if we might have a good pull-back and buy opportunity arising on GBP:USD?
Time and again I’ve noticed Retail traders position themselves against the prevailing trend. I don’t know why they do it – my guess is they are determined to catch the tops/bottoms (which I’d argue is a fools game). But further to that, does it mean anything at all when they collectively switch from net Short to net Long (i.e. the green crosses above the red area, or vice-versa)?
Open to ideas…