Commitments of Traders (COT) Reportis a market report posted on Friday by U.S. Commodity Futures Trading Commission (CFTC) on the Tuesday’s open interest of Traders who are obliged by law to report on their open positions. As sample of it as below.
Commitments of Traders Report
Our interest is on Commercial Positions and the total Open Interest. The commercial traders are usually the Smart Money and the Market Movers and the Open Interest gives an idea of their current power of influence in this market.
Swiss Franc Futures COT Report
With the weekly COT data above collected over time, it would be possible to know the Big Boy’s sentiments by translating the data into a graphical form. The chart below shows a decline in both the Open Interest (Green Line) and the Commercial Sentiments (Red Line), along with the price found topping and forming Hanging Man candlesticks, which are bearish indications of possible price reversal. (see red highlighted rectangle)
And by tracking the Commercial Sentiments and Open Interest, we can know the Big Boy’s sentiments and even earn a fortune! As from the chart below, a possible 1800 pips could be profited over a span of 2 months.
Swiss Franc Spot Price with COT Chart
Next week, we will see an example of COT Chart for Gold and the traders found under the COT report.
