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CFTC Commitments of Traders (COT) Report | Market Sentiment

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Please, sign in with it. Please, provide us your e-mail so we can verify your account. Keep me signed in. COT is a weekly report released every Friday at 3: The COT provides a breakdown of aggregate positions held by three different types of traders: The most note-worthy of these three groups is the Non-Commercial traders which are the large speculators, mainly hedge funds and banks trading currency futures for speculation purposes and their net long or short positions.

One can follow these guys to gauge trend strength, as they are often trend followers, and at the same time one has to be mindful that any extreme in net short or long positions can signal a trend reversal.

Trend Following Signal When you follow the Non-Commercial large speculators you are generally following the smart money, the guys who are spending their careers studying the markets and pinpointing the trends. Why bother to spend all your time studying the charts and news for trend direction when you can follow the path of those who are plotting it already.

If the Non-Commercial's are net long but not overly long and currency price is above the day moving average , then one can reasonably assume that the trend is up.

Conversely, if the Non-Commercials are net short but not overly short and the currency price is below the day moving average, then one can reasonably assume that the trend is down. Contarian Signal When Non-Commercial positions enter into net long or net short EXTREME positions, it is a sign that there could be a potential reversal. Whenever anyone piles up on one side of the market, it is time for the market to change direction. What is the ideal place or extreme number for take a contrarian stance?

This is sometimes difficult to determine for as times change, so too does the extreme levels, so that what was considered an extreme level five years ago might not be extreme today. The bulky CFTC report itself http: Scroll down a couple pages to the "Current Legacy Report" and click on "Short Format" under "Futures Only" on the " Chicago Mercantile Exchange " row to access the most recent COT report. Calculate the net long or short of the Non-Commercial by subtracting the short contracts from the long.

This report is bulky and intimidating, and it takes three steps to get to the information you need. One has to dig for information and do the calculations oneself. Since the COT comes out weekly, it is not so useful an indicator for short term trades. It is also hard to dig for and extract historical data on past positions to bring context to one's research. FXLab's COT Oanda was clever enough to see a need for a more straightforward way of extracting the right information from the COT, as well as plotting it historically, and so they came up with this cool tool: Nor do you have to spend countless hours to find all historical COT data for each pair.

This tool does it all for you. The beauty is that wherever you move the red vertical line on any week you can simultaneously see three useful things lined up together: Oanda provides a needed visual graph of the the changes in Non-Commercial contracts net long and short in relationship to rate and open interest going back as far as Jan 1, Oanda's ability to cross-reference the above three items can be invaluable for traders wanting to research past levels that helped to confirm a trend or a signal a reversal.

Oanda could have allowed the option of seeing the Net positions of Commercials and Small Speculators as well. They choose the most popular group, which is understandable.