Commitments Of Traders
Information from the COT (Commitments Of Traders) is the base for direction detecting of analyzing financial instrument for next week. The short way for useful analyzing of the information, is create specific digital coefficients, and with help of this calculations I am making assumptions about the direction for next week on a particular pair. For example on GBP.USD release of these expectations is quite high and is equal to more than 90%.
What means COT for sell or buy?
If COT shows the direction of Sale, it does not mean that the price of a financial asset will be all week fall down - (but is more often the case). It just means that deals for sales for next week more PROFITABLE than in the Buy. Also with the direction for Buy, if COT shows the direction of Buy, then get up in the Buy positions during next week more profitable.
This is important especially when an open position does not have stop loss (SL) order (90% of my transactions – without SL) and if there something went wrong, then the analyzing of COT and other parts of my analysis help me to make right decision about my next trade decisions.
How COT is usually works over?
There are 2 variants to use the COT:
1. Immediately on Monday in the direction of COT and on Wednesday-Thursday the pair is determined, continue the direction or then turn around (I call it not the best variant);
2. I have found it the best: when Monday we go against signal of the COT and from Wednesday the price goes on direction showed by COT at beginning of the week.
An important parameter here is the price level of opening of the week. At this level, the price often stopped and turns around, as well as level price opening of the week is a target conservative strategies.
See pictures: Red variants - "cool". Green - "not like very much"
What affects the quality of the analysis?
Periods of options or futures expiration (as the current week), and very significant fundamental information on markets.
Have a good week!
Information from the COT (Commitments Of Traders) is the base for direction detecting of analyzing financial instrument for next week. The short way for useful analyzing of the information, is create specific digital coefficients, and with help of this calculations I am making assumptions about the direction for next week on a particular pair. For example on GBP.USD release of these expectations is quite high and is equal to more than 90%.
What means COT for sell or buy?
If COT shows the direction of Sale, it does not mean that the price of a financial asset will be all week fall down - (but is more often the case). It just means that deals for sales for next week more PROFITABLE than in the Buy. Also with the direction for Buy, if COT shows the direction of Buy, then get up in the Buy positions during next week more profitable.
This is important especially when an open position does not have stop loss (SL) order (90% of my transactions – without SL) and if there something went wrong, then the analyzing of COT and other parts of my analysis help me to make right decision about my next trade decisions.
How COT is usually works over?
There are 2 variants to use the COT:
1. Immediately on Monday in the direction of COT and on Wednesday-Thursday the pair is determined, continue the direction or then turn around (I call it not the best variant);
2. I have found it the best: when Monday we go against signal of the COT and from Wednesday the price goes on direction showed by COT at beginning of the week.
An important parameter here is the price level of opening of the week. At this level, the price often stopped and turns around, as well as level price opening of the week is a target conservative strategies.
See pictures: Red variants - "cool". Green - "not like very much"
What affects the quality of the analysis?
Periods of options or futures expiration (as the current week), and very significant fundamental information on markets.
Have a good week!