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.
