a few times over the last several years. Commitment of Traders (. Price is also rising during this time. The Canadian dollar future will move with the CAD/USD, which is inverse to the USD/CAD forex pair most forex traders are used. Each futures market will be a bit different, but critical COT levels will often repeat and indicate when speculators are overextended. But we want more evidence, which is why I usually wait for a pullback before taking trade (with most of my strategies).
Before we dive into how to use the Commitment of Traders report as a forex trader, you have to first know where to go to get the. Sometimes we have positions stay at extreme levels for long periods of time, and the price continues to move in the trend direction without any major price reversals. I wouldnt over-use this indicator. But first a bit of context. The position ultimately reaches -99,000 in late May.
It aggregates the holdings of participants in the.S. Commercials include importers or exporters who are hedging foreign currency exposure to control costs or normalize income. For example, a financial organization trading in financial futures may have a banking entity whose positions are classified as commercial and have a separate money-management entity whose positions are classified as non-commercial. It is a much weaker down move than the prior up move. COT, futures-and-Options-Combined report, option open interest and traders' option positions are computed on a futures-equivalent basis using delta factors supplied by the exchanges. But speculators have a limitthey cant purchase or sell indefinitely. COT data is not a strategy in and out of itself, rather it is just a tool that can be combined with a trading strategy and trading plan. Futures markets (primarily based in Chicago and New York where commodities, metals, and currencies are bought and sold.