Forex Open Position Ratios
This is for general information purposes only and should not be treated as trading or investment advice!
The graphs show the ratio of Long (green) vs. Short (red) open positions for each of the Forex major currency pairs, updated approximately every half an hour, 24/7. Ratios could be interpreted as a Sentiment Indicator for traders to predict possible market reversals.
How To Interpret These Graphs
Given that these are broker-specific indicators, ratios that are close to the 50% level could be said to be pretty inconclusive in terms of general market sentiment, as there is an implied margin for error when taking such a small sample of the total market. However, ratios that are much bigger or smaller – such as over 60% or less than 40% – could be said to be a fairly useful indicator of how the market is feeling about a currency pair.