Tag: cot

Risk sentiment has been on and off during the last few months and the FX market was difficult to trade.
Commitments of Traders analysis gave few signals in 2017. The reports were delayed few times due to Federal Holiday and the data came out too late, especially in December. Nevertheless
There was one signal worth attention, which confirms once again how powerful C.O.T data is.

Here is just another example of how powerful Commitments of Traders Report can be in the hands of a skillful trader.
This time the C.O.T analysis spotted a perfect top in AUDUSD – once again!

Aussie had been trending up since Jan 2016 from 0.7100 bottom to a top at 0.8150 in September this year. The uptrend consisted of few major swings up and down, but the price managed to trade higher at the end of each cycle.

I don’t remember times when I traded without looking at what is smart money doing in the markets. I can’t imagine trading without C.O.T.
C.O.T predicted market swings many times before with a deadly accuracy.
Below is a great example of C.O.T. data spotting an important trend reversal despite the “noise” in the markets.
Japanese Yen has been depreciating in value since 2012 due to BOJ QE programs. Ever since market expects BOJ to keep printing and JPY has been portrayed as a weak currency in the basket.
Every trader is looking for pullbacks to be able to load up more on longs USDJPYs.