It’s no secret that the weekly Commitments of Traders report (published by the U.S. Commodity Futures Trading Commission) often yields extremely important clues as to future market direction. This knowledge of how the ‘Big Dog’ traders are positioning themselves in the futures market gives us a huge advantage when trading currencies in the cash market.
Yet sometimes it can be difficult to know how to incorporate COT data into actual trading decisions. Some make the mistake of wanting to jump into a trade right away when they see a potentially important COT signal. Others miss opportunities altogether because they’re confused about the link that exists between these two markets. The result? Frustration and dissatisfaction.
Watch this video if you want to better qualify COT signals and draw the linkage between COT positioning and high level price action.
http://www.forexmentor.com/cot/index.html
Frank Paul
Forexmentor Team
Licensed Brokers
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