In this video we're going to be discussing retail sentiment and how Traders can use the positioning of retail traders to their advantage whether you're trading Forex Futures cryptos Etc let's jump in and I'll show you how to use this indicator Welcome back to the channel guys today we're again talking about retail positioning or the retail sentiment uh concept or indicator and how you can read it to quickly identify what retail Traders are generally doing on a particular asset or currency pair so retail sentiment what is it well on aHigh level it is basically just the idea of looking at the current positioning of where retail Traders are buying or selling slash shorting a particular asset if you took any asset off of this list for example Euro GBP what we can see here on this screen is that ofCourse the left hand side is all the different assets in question and the right hand columns simply show the long to short ratio percentage-wise of this particular asset so if we looked at Euro GBP you can see that we have an 89 percent long ratio if we zoom in on theRight and a of course 11 short ratio in terms of of retail Traders they are 89 percent long and 11 sure so what is this well of course sentiment analysis is something I want to talk about before we go further in this video now there are different Columns ofAnalysis that I like to think of and the three that I generally refer to are f a s a and ta now if you're not familiar with what this stands for we'll go through them real quickly fa stands for fundamental analysis this is looking at headline news this is looking atInflation studies and interest rates and forecasts for what the Federal Reserve may be doing technical analysis is what most retail Traders are familiar with this is of course looking at chart patterns Trends moving averages that sort of thing this is the most talked about of the three columns and sentimentAnalysis is the idea of looking at Market participants to get an idea of where the market may go now this is a really interesting indicator and today we're talking about one half of essay the other half however is found in the smart money tracker and now on yourScreen you'll see a thumbnail of a video that I went over the smart money tracker inside of the edge finder which is the software that I'm using here that allow us to take a look at what cot data or institutional Traders were buying and selling now again you can also find thatVideo that will be linked in the description as well as a card in the top right but I want to talk about today the other side of the coin which is retail positioning retail positioning again refers to the for lack of a better term the dumb money crowd the crowd thatTends to lose money now of course when we talk about the smart money tracker we talk about cot data we talk about institutional Traders all of those things are synonymous we generally like to look at those things as hey that's a positive affirmation if we know you know forExample if we're looking at Euro pound and institutional money is shorting that currency pair on average that's a nice bias to be short ourselves but when we talk about retail positioning we need to discuss something we know that retail Traders on average lose money and so ifRetail Traders are losing money and they are law on something that to us is more of a short signal or a sell signal now again this is the way I read retail sentiment uh and this is basically what we're doing here we can select any particular thing let's say weWant to look at currency Pairs and I selected just the majors from this top right column here just for reference so let's take a good example let's take a look at USD JPY usdjpy is currently 67 shorted by retail Traders and 33 percent long by retailTraders I want to pause for a second and ask you would you rather be just on this not looking at the chart or anything else just for a moment would you rather be short dollar Yen with the retail crowd or long dollar Yen against the retail crowd now again when I say withOr against I mean by would you rather be in the majority which is shorting this or the minority which is actually going long on dollar JPY I'll tell you where I'm currently rather being I'd rather be on the long side because again we know that this crowd that we're pulling data from typicallyLoses money now I want to show you something while we discuss this let's take a look at that example we'll punch in USD JPY to take a look at this and what we can see here is that USD JPY has been trending to the upside what youWill notice when you take a look at retail positioning is that generally speaking retail Traders are contrarian to the Market's major moves so when we look at the daily chart we see dollar yen is trending up and we remember mentioned that retail Traders are shorting this currency pair that is anInteresting view in my opinion as what you'll see is very frequently we could take the Other Extreme usdchf and I bet you right now that this Market is probably trending down so if we take a look at usdchf on a daily chart there you go you have this downward trendingMarket and Retail Traders are again they are long this particular currency pair so we like to use this as a contrarian indicator now because we see this does this just mean immediately I'm going to go short just because retail Traders are no this is a confirmation tool likeEverything that we discuss on this channel in terms of strategy using the edge finder which is our Market scanning software here that you were looking at we use this as confirmation to our existing trading strategies so this is how anyone can use retail sentiment toKeep an eye on what the crowd is doing to avoid perhaps the most important concept here is to avoid being caught in the same crowd as the retail traders who typically are losing money here's an example right now of something that's not so polarizing which is gold 57 to 43I personally only really pay attention to something once we get more into the 60 or 70 percent one-way Direction so for example the S P 500 retail Traders are 66 percent law I'm sorry short on the S P 500 that to me would actually signal a bullish bias on this currency pair I'mSorry not currency pair this index so in the case that this thing is pulling back I actually will be looking to get long and I'll show you an example as we speak right now so I am actually looking at the NASDAQ and I have a current positionOpen in my own trading account and here it is so I am currently long the qqqs or the NASDAQ ETF and I'm currently long it's a down day in the market and some of my other things are not working out so well you can see I'm down almost onePercent on the day on this particular account but the concept here being we know that retail Traders are typically again they are shorting this upward momentum and I am looking to actually go against them and fade their trade which is again a short bias so this is howRetail sentiment can be very very useful to Traders if you would like to get access to the software that I'm using to grab this retail positioning as well as all of our other key information like seasonal trend ends the smart money tracker and so much more you can findOut more information Down Below in the description to set up yourself with access to our software which is called the A1 edge finder my company is a software company that builds tools for Traders and if you'd like to get access on Hands-On data like this in your uhYour toolbox as a Trader then feel free to check out the website linked Down Below in the description to sign up for the edge finder and also guys as you are watching here if you use code YT VIP which is also linked Down Below in the description there's information aboutThis you'll knock off a subscriber discount off of our software so just by watching this video remember to use code ytvip and that will give you a subscriber discount off of our software thank you for watching hey guess what I just found a video made just for youClick this video to help with your trading and uh thanks for watching Thank you Foreign