indicator. One cannot sustain profits in the long run without understanding the real forces behind the price movement. Dont BE ONE OF those guys!
If you get a valid trade signal based on your strategies, and the COT data isnt near an extreme, that doesnt free forex bonus accounts mean you shouldnt take your trade signal. The following is an example of a Euro (FX) futures chart showing the COT Report data along the bottom. The extreme COT alerts us to a possible trade (or to avoid a trade) but it doesnt signal a trade. This is the only law of the price. Non-Commercial Traders Money Managers or Speculators. We are not eligible to report our trading positions to cftc. As a group, these are counter trend traders. Supply and demand is a basic principle in economics illustrated in the chart below. You can access the Historical Viewable table and in the excel format by going into left hand side panel on the website as per screenshot below. This is due to the fact that fundamental analysis is often connected with the economic news release, and its impossible to predict the market reaction to the news because traders have limited knowledge of finance and macroeconomics. They know they will be producing gold, and will need to sell. Before going into COT Report forex strategies I want to briefly outline a few of the key elements.
While it isnt an exact timing indicator, if other conditions align and I get a valid trade setup, an extreme level on the COT can often mean a sharp and large price reversal. Each market is being given a table. Provides an alternate entry method compared to the traditional approach.