![]() ![]() However, they are useful to retail traders engaging the market with intraday, day, and swing strategies. These SSI guidelines do not constitute formal investment advice. SSI levels of 2 or lower are considered weaker signals of sentiment. Generally, the index is considered as giving a stronger signal about buy and sell trends above positive levels of 2 and below negative levels of -2. Each position is counted only one time regardless of the size of their trade. If the indicator shows a positive reading of 3.26, it means that 3.26 long positions are present in the market for every short, and shows there is an overall preference for buying at the moment. On the other hand, a negative SSI can be interpreted that a market is oversold and awaiting reversal.įor example, if the SSI indicator shows a reading of -4.59, it means there are 4.59 short positions in the market for every 1 long, and shows there is an overall preference for selling at the moment. Accordingly, a bearish trading strategy may be appropriate as sellers are the majority and downward price action could extend.
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