Hi,
I would like to start a discussion on using COT report as one way for making trading decision. There have been sporadic information over the internet on how to use COT but I have not found too many proponents for the efficacy of COT report for trading.
From what I understand, the one way COT can help is assess the extent to which the commercials are biased and therefore signal a possible begining of a trend. So if Commercials are extremely long or short (maximum in the last 3 years or so) that might be a signal of a rally or downtrend respectively.
Any thoughts on the above and also any thoughts on other ways of using the COT report??
I would like to start a discussion on using COT report as one way for making trading decision. There have been sporadic information over the internet on how to use COT but I have not found too many proponents for the efficacy of COT report for trading.
From what I understand, the one way COT can help is assess the extent to which the commercials are biased and therefore signal a possible begining of a trend. So if Commercials are extremely long or short (maximum in the last 3 years or so) that might be a signal of a rally or downtrend respectively.
Any thoughts on the above and also any thoughts on other ways of using the COT report??