EUR & YEN Futures - Use of Commitment of Traders data by DanV on TradingView.com
9 January 2018
Commodity & Futures Trading Commission gather data from various Exchanges and compile which are then released and are available on their Websites - http://www.cftc.gov/MarketReports/CommitmentsofTraders/index.htm
Commitment of Traders Data = COT (abberiviation)
These data are released on Friday of Each Week after Market Closes. They are based on Positions as close of Tuesday of that week. These are compiled to show 3 main groups which are:
Commercials = Banks, Broker/Dealers (Hedging the Risk), Producers, Wholesalers, Or Commodity Users – Either looking to Hedge Risk or Receive or Send Delivery.
Speculators – which are:
Non-Commercials = Money Managers, Hedge/Leveraged Fund Mangers, who are Speculators and are not looking to for delivery or receiving one on settlement day.
Non-Reportable = Still large traders, but a whose positions falls below the threshed to be classes as Non-Commercial.
Non-Commercials have Research Departments manned by Fundamental and Technical Analysts. These are then use by their trader. Therefore their positions reflect both the Fundamental and Technical analysis and can be viewed as Hybrid.
Their sudden change from week to week of significant amount or percentage and their overall net long or short compared with historical behaviour can be used as what might be deemed as relative extreme together with Open Interest and Technical Analysis can provide interesting and useful insight in the strength of the trend or possible reversal.
See the linked EURUSD chart and a video publication of Oil for further details on how I have used them. Below is a link of examples of the weekly data released for Futures for respective Instrument: https://drive.google.com/file/d/1YFzdADw8xZ7dt4ihgxJTcpUBUOOSzqtS/view?usp=sharing
I hope it will help you in your own application of this to your Technical Analysis .
Thank you for viewing my video and welcome comments or questions.
DanV