Jump to content

FTSE Down Since Thursday


Nelsy-Boy

Recommended Posts

Hi @Nelsy-Boy, there is a surprising amount to unpack there but will concentrate on the main point. You are referring to the DailyFX Sentiment strategy which goes along the lines that as 80% of retail traders fail then 80% of retail traders must be wrong most of the time. So if 70% of retail traders are long the FTSE it is a bearish signal and you should be thinking in terms of the FTSE going lower, which it did.

See the chart below, 90% of retail traders are long in gold so that is a bearish signal. 79% of retail traders are long bitcoin so that is also a bearish signal.

Not particularly encouraging is it, especially as the stats back the signals.

sent1.thumb.PNG.208a7200b51d9f3c320198b780e99db4.PNG

Link to comment
Guest PandaFace

Don’t forget that when traders close their positions it also causes pressure on the other side of the trade. 

For example if 90% of clients are net long, then closing the trade is actually selling and giving sell side pressure. A lot of people forget this. There’s also an argument that if some are going to close, some will go straight into a short trade doubleling that movement. 

The only trade net long Can do is reverse the trade to close and therefore push the other way.

Link to comment

Archived

This topic is now archived and is closed to further replies.

  • image.png

  • Posts

    • Hi    when I try to buy the tickers SDIV and KBWD the platform does not allow me. This is strange as I have a broker account in France where I can easily buy these products. the MIFID retail legislation is related to CFD and margin, hence the reason must be different, can anybody help me?   Thanks
    • BOOM UP is the ultimate Game-Fi experience on Telegram, offering gamers a chance to earn real profits while immersing themselves in thrilling gameplay, unique art, and social interactions. Say goodbye to time-consuming games and hello to a world where fun meets profitability! By blending traditional gaming with the power of blockchain, BOOM UP is revolutionizing the industry and bridging the gap between Web2 and Web3. Get ready to dive into the future of gaming and experience a whole new level of excitement and rewards! Exciting news – BOOM UP is about to launch on Bitget, taking the crypto world by storm. Don't miss out on the chance to be a part of this groundbreaking project that's set to redefine the gaming and finance landscape. Get ready to level up with BOOM UP on on this exchange and unlock endless possibilities in the world of Game-Fi and NFTs!
    • As crypto adoption explodes in the EU, Bitget is fueling the flames with Builders Meetups – engaging events designed for both crypto veterans and newbies. Imagine learning from the Bitget EU COO Apprentice and crypto bigwigs, then building your network with fellow enthusiasts (potential friends or collaborators!). Plus, expert talks will boost your crypto IQ and there might even be free swag! Bitget goes beyond exchange, fostering the community through educational resources on Bitget Academy and a user-friendly platform that welcomes newcomers to the exciting world of crypto. The "Meet Bitget: Your Gateway to Crypto Trading" event in Bucharest, Romania on July 18th is your chance to dive in – registration is free! Don't miss out and spread the word.
×
×
  • Create New...
us