There are plenty of forex indicators out on the market, but for some reason, there are two unusual but very strong ones that a lot of traders consistently look past. The % Bullish and Commitment of Traders Report are tools that can spot some very significant trends if you take the time to learn them and put them to good use.
Using these two forex trading techniques will add a new weapon to your arsenal. Most changes occur because people get too greedy or are scared of what is going on in the currency market. When either of these happens, the value of the stock flips and heads in the opposite direction.
If you want to learn more after reading my forex tips to these two forex indicators here, there is plenty more information available if you choose to take advantage of these two indicators and use them in your forex trading strategies.
The first indicator is called the % Bullish. The % Bullish is simply a survey of current investors in the forex market. It evaluates and rates the bullishness of the market. When the number is less than 20%, you will find that prices usually are being oversold, and when it is above 80%, they will more than likely be overbought.
The Commitment of Traders report is a free report that will allow you to track the path of the most successful traders in the business. Every other week a report is published by the CFTC with an evaluation of the holding of the futures market, and knowing these positions is extremely helpful to anyone involved in the forex market.
This report will feature the positions of hedgers and speculators. Hedgers are more consistent and make their decisions based on the protection of their investment, while speculators tend to let greed and fear motivate their buying and selling decisions.
As I am sure you have read a million times already, two things are terrible to depend on in the forex market, emotion and trying to predict a trend. You are looking for positions in these reports that have the commercials on one extreme the speculators on the other end of the spectrum.
In most cases, when this happens, you will find that the speculators are wrong, and you will be able to spot top markets and bottom markets easily. At this point, you should fall back to your technical analysis and forex currency trading systems to decide if that particular trade is for you or not. Using these two unconventional yet potent forex trading techniques can add a significant opportunity to your currency trading experiences.