FX Trading: How to use the Commitment of Traders Report (COT)

Posted in US | Trade Tap Blog | Fundamental Analysis
4 minute read
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The futures market covers a broad range of market instruments, and the Commitment of Traders report can provide an overall view for different markets through comparing position levels on instruments such as FX futures, commodities, financials, interest rate-based futures and equity futures. Learn more.

What is the Commitments of Traders Report?

Categories: Who are the participants?

Commercials & Hedgers

Large speculators

Small speculators

COT-Report-3-4
Source: COT Report: USD INDEX, tradingster.com

Advantages and Disadvantages of the COT

Advantages

Inclusive and diverse

Data source

Historical turning points

Trend confirmation and divergences

Sentiment

Disadvantages

Public

Non-representative

Delayed

How to use the COT in forex trading

COT-Report-1
Source: cotbase.com

Divergence between Price and COT positions

COT-Report-2
Source: cotbase.com

Inter-Market analysis signals

COT-Report-3
Source: cotbase.com

Conclusion

Disclaimer