The fallibility of human traders - a sentimental theory behind the "unusual" moves in FX

Method:

Using the Myfxbook average long versus short price to gauge "normal parameters"

Theory:

The simple fact the majority are often wrong and generally uninformed, and they hold onto losers and cut winners short.

Conclusion:

So, put simply we should always find ourselves within the "Average Short vs Long" price range.

If price exceeds, that small minority of traders are making money - but will they hold?

It's unlikely the majority of that small minority will hold onto winners for too long

Video will explain it graphically.