Showing posts with label commitment. Show all posts
Showing posts with label commitment. Show all posts

Monday, August 11, 2008

How To Use The COT Report



In this section we will show you how to use the Commitment of Traders (COT) reports to accomplish this goal as we will skillfully explain how to break down the COT data into producers, consumers, and funds so you understand the positions and activities of these key market participants. In addition, you will be able to detect position imbalances that could be harbingers of major trend changes.By analyzing the data provided by the COT report, traders can see the market participants prepared or positioned themselves ahead of significant market turning points and in front of extensive bull and bear markets.tracks the positions (longs and shorts) held by all market participants, my analysis further breaks down this data and applies proprietary statistical measurements and indicators to identify trading opportunities. We combine these indicators with proprietary price indicators and graphically present the results to you.

Commetment Of Traders Report






The Commitments of Traders (COT) reports can be a very powerful trading tool to help anticipate market direction as it provides a breakdown of each Tuesday’s open interest for market reports in which 20 or more traders hold positions equal to or above the reporting levels established by the CFTC., and it measures the net long and short positions taken by traders in the futures market. Of course, it is very important to know that For reportable positions, additional data is provided for commercial and non-commercial holdings, spreading, changes from the previous report, percents of open interest by category, and numbers of traders
The report is pretty straight forward, but here’s a quick run down of what each category is.• Non-Commercial – Traders such as individual traders, hedge funds, and financial institutions. who are looking to trade for speculative gains.• Commercial - These are the big businesses that describes an entity involved in the production, processing, or merchandising of a commodity that uses currency futures to hedge.