You’ve come to the right place Here’s why I say that. No one has more experience wth it than myself. Just about all of the other people out there talking about the COT reports learned about forex impact point and figure trading from me or students of mine. No one, and I mean no one was writing about these reports when I first began discussing and point and figure chart forex trading with them in 1970.
My first lesson from the insiders I first learned about the importance of the Commitments of Traders Reports from Bill Meehan. Bill had been a member of the Chicago Board of Trade, and in 1969 revealed the basic secrets of these reports to me. I invented some ways to make it easier to see the impact of these guys by making mechanical indicators with the data. WHAT THE COT REPORTS TELL YOU The report is issued on Thursday evenings by the Commodity Futures Trading Commission. The largest powers in the marketplace are the Commercials. These are the large users and producers of the commodity. They do not use the commodity markets to speculate or directly make money in the markets.
They use the markets for selling and delivery, not speculating. The Large Traders are the second most dominant figure in the report. These are not quite what you think. They’re not just large traders like me. They are nowadays, for the most part, commodity funds that are trying to speculate directly in the market.
Interestingly enough, sometimes their record is very good in specific markets, but, usually they are wrong. Just because the Commercials, the largest players in the marketplace, have been buyers does not mean a market will rally. Let’s say you are a Commercial in Sugar. You need sugar to make candy.
In fact the more it declines, the more sugar you will buy in the futures markets now, for delivery later on when you will be making candy. Your main concern is how much the sugar in your candy costs. Taffy to sell for a profit. Study this much and you’ll run across something called the COT Index or Commercial Index. That’s why I think it’s fair to say I’ve been using this data longer than anyone else out there.
Using the COT index is not about chart reading or any of the mystical stuff called technical analysis. Commercials have been doing a relatively large amount of buying, and prices usually rally. Is this the type of indicator you are looking for to help your trading and investment decisions? In this next chart we’re looking at the Commercials Net Position in Soybeans. Theme: Daily Magazine by AF themes.
Forex Pivot Point Calculator Use our free Pivot Point Calculator to better understand the fluctuations of the currency market. The pivot point calculator is a simple too to use. All you have to do is enter the opening, closing, high and low point and figure charts forex trading from the previous business day and the pivot point calculator will calculate the pivot points. A pivot point is simply the point at which the current trend changes upward or downward. That is to say, if the trend had been rising, at the pivot point, the trend would now be descending. The benefit of the pivot point calculator should be obvious.