The Price Doesn't Want to Decrease Even Though the Seller Offers 70 Percent Off

We cannot deny that price movements on a chart are the result of transactions made by many traders. From this statement, we must understand that if prices move due to the accumulation of transaction results, we must be able to see the comparison between sellers and buyers at the same time.

If we act as a small trader, we can only follow the direction of the major trend. Simply put, if the price goes up, we join the buy, and if the price goes down, we join the sell. We will not be able to move the price by opening small transactions, so it's easy to follow the flow.

The data used as your reference is an Oanda survey. Oanda conducts research/or surveys to find out how many traders/sales activities and purchase activities there are in forex trading over a certain period.

Like other survey institutions, Oanda certainly uses sample data, random data, or certain statistical data.

Out of the many traders in the world, Oanda certainly does not interview/know exactly what market participants are doing. How does Oanda know this percentage? It could be that OANDA generates this research/survey based on the data it knows and has. Perhaps based on clients/investors or traders who conduct their activities at OANDA.

Or it could be based on other data.

If we now get information. Where Survey Agency A says:

... 1 in 10 Indonesian citizens owns a motorcycle. This means that out of 100 Indonesians, only 10 own a motorcycle. Is this really accurate and trustworthy?

Now what is the population of Indonesia? Does the agency really know the accurate population data of Indonesia?

Whereas the agency conducted a survey based on:

1. Residents over the age of 17
2. Indonesian citizen income above Rp. 5 million
3. Residents with high school education or higher
4. Residents in urban areas
5. etc.

So the conclusion is that Oanda conducts surveys and produces this ratio based on certain data. And I am sure Oanda does not know exactly how many traders there are in the world. he he.........

How do we deal with all this?
1. Data cannot be said to be 100% accurate.
2. There needs to be a comparison to other data so that we can draw conclusions.
3. Need to have indicators as a reference

The Indonesian Pilpress is ready to be held,
1. Survey Agency A says Prabowo has the potential to become President in 2014
2. Survey Agency B says Rhoma Irama has the potential to become President in 2014
3. Survey Agency C says Yusuf Kalla has the potential to become President in 2014

etc...

Which one to believe? It's not clear yet. because these figures are only considered POTENTIAL to become president, not said to be CERTAIN to become president

The same goes for Oanda. In addition to being a broker, Oanda also provides surveys and percentages of the buy-sell ratio. based on data and its categories.

and it turns out that the ratio is based on:
1 Trade forex with OANDA fxTrade: 1,104,834,048 transactions and counting (based on trader transactions at Oanda)
2. Of the 1,104,834,048 transactions, 25.63% of traders traded EUR/USD and of the 25.63, 29.78% of traders made BUY and 70.22% of traders made Sell.

let's calculate:

1. total transactions 1,104,834,048 x 25.63% = 283,168,966.5024 traded EUR/USD

2. BUY EUR/USD 29.78% x 283,168,966.5024
= 84,327,718.2 transactions

3. Sell EUR/USD 70.22% x 283,168,966.5024
= 198,841,248.2 transactions

How many traders are there at Oanda?
There could be 1 million traders at Oanda.

and out of that million, there could be 1 trader who makes 20 BUY EUR/USD (averaging) on the other hand he also makes BUY GBP/USD. or Sell AUD/USD or others several times.

If so, the results will be different again if Instaforex, Dukascopy or other brokers, if these brokers issue buy/sell surveys/ratios.

thanks

@Dadang Sdrjt: Please note the following statement:

1. Sentiment and ratios in Oanda data are taken from the entry positions of traders who open positions at Oanda. In other words, this sentiment data will differ for each broker because each broker has a different number and type of clients.

2. The sentiment and ratios displayed on Oanda are retail sentiment, not the sentiment of large traders such as banks and the largest hedge fund institutions (big boys). And as we know, retail traders suffer the most losses in percentage terms compared to banks and hedge fund institutions. 

Based on the 2 reasons above, I advise against ever trading solely based on retail sentiment from a broker. This type of sentiment can be used as a comparison in decision-making, not as a primary factor for buying or selling.

Thank you