Actually there are enough traders active at FXCM to make this a good representation of the mood of each currency pair. But you are right in that this is not meant for short-term trading. Also, it is not a timing indicator. I think of this report as showing the strength of the daily trend of each pair covered. When the ratio gets to +3 or -3, I start to pay attention as that is a good indication of a strong trending move developing on the daily chart. You can then use any other form of analysis to help you time your entry on a shorter-term chart, but would not recommend using a chart shorter than the hourly. I think the 4-hour chart plays nicely with this data. A strong directional bias in the big picture can be of great help to traders though, you just have to have an approach to find your entry and exit. But the SSI can increase your chance of success by allowing a trader to concentrate on looking for buys or looking for sells. When we trade with the momentum of the market, everything else can fall into place nicely.

__________________
Enroll in our online FX Power Course today and get personalized instruction from our team of expert traders 24 hours a day. We have taught over 25,000 students and in just eight lessons, we will teach you the fundamentals of Forex trading. Click here to get more information