What is Speculative Sentiment Index SSI

Usually Forex indicators are based on past prices ( lagging indicator ) , and these indicator will always lagging the Foreign exchange market. And as we know is that past data are not perfectly predictive the next price actions. But the Speculative Sentiment index is different with other Forex trading indicator, SSI Speculative Sentiment Index is considered one of the many leading Forex indicators in the Forex trading market. What is SSI Speculative Sentiment Index ? SSI or Speculative sentiment Index is data information derived from live Forex traders with actual positions on trading platforms. The trading statement, which is the most favorite instrument of SSI Speculative Sentiment index , is a calculate of the number of Forex traders on trading platforms holding buy position in a Foreign exchange pair to the number of Forex traders holding sell positions in the same currency pair.

The trading statement of the SSI is one of the most favorite zones of the data and this is where Forex traders can analyze the value number of Forex traders buy in currency pair against the number of forex traders sell in a currency pair.

The bar chart will show the SSI number , as we can see the Euro is showing a current reading of -1.91. It means that every one Forex trader keeping a buy position in the currency pair , there are 1.91 Forex traders that are keeping sell positions.

Readings that are above the zero represent a number buy position in the currency pair, and readings under the zero represent a number sell position in the currency pair.

Speculative sentiment index can be helpful indicator. but, how to use SSI Speculative sentiment index ? For Forex traders that want to use SSI indicator in their trading system , it may be advisable to first identify strong market trend , and then to confirm with Speculative Sentiment Index Indicator. For example , in the USDCAD chart , Speculative Sentiment Index SSI indicator was at 4.4 - which would be downtrend considering that more selling pressure may be in the future of USDCAD than buying pressure, this can be taken as an chance to open sell position. Forex trader can find to open the sell position in a variety strategy. Some Forex traders may prefer to wait for market price to trade up to an intraday resistance levels , while other traders prefer to wait for an RSI Relative Strength Index signal on a shorter time frame chart.