As part of an ongoing series, I’m keeping one eye on the relative Long and Short positions of retail Forex traders. Does this information provide any trading clues? Let’s try and find out.
Here are my latest observations:
A generally rising market, in which the retail crowd are generally… short (?) !
The recent and sudden initiation of long positions and subsequent reversal to net short (the green/red cross-over) may signal a good buying opportunity below 1.38000.
Did the Thursday/Friday green/red cross-over provide a reliable buy signal?
Despite the recent rally, I’m still calling this a down-trend. Are we about to witness a red/green cross-over and potentially a reliable sell signal?