Quote:
Originally Posted by ryanno
Dear Sean,
Thanks for your info.
However i find it may the other way around. I follow SSI everyday and what i know the more positive number they are, the more fall the price. In the other hand, as the SSI number decrease, the price is going up. If you take short position after SSI reached +3 for example, the price is already in the bottom for some reason. What do you think? is it just an anomali cause I saw this happen a lot of time....
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It's only that way in a sideways range. For instance, lately with USD/CHF that would have been true for part of that time due to the range.
But think of it this way...if a pair is downtrending and everyone keeps trying to "call a bottom" and the trend continues on (which is most likely), then these guys get either 1) stopped out, 2) scared out, 3 ) margin called out or 4) they finally reverse their positions.
Any of these combos keeps fueling the trend onward. That's why SSI works so well in trends. I've traded using it for years and it's been great in my opinion.
