COT analysis

1) COT Change: It compares the level of the change in COT data to a predefined range of the data and shows this change in percentage compared to this range. Large changes can sometimes be great signals as shown in my previous example (Oats).

2) COT Extreme: It shows how many reports ago stood the given COT data at the current level. In case of All Time signals, it means that the given COT data has never in the past stood at that level, these signals are relatively rare and thus are extra strong signals.

3) COT Index: A classic analysis technique of COT data. By establishing a lookback period, it is possible to “normalize” COT data on a 0-100 scale. A 100 reading shows that during the lookback period, the current reading is the maximum; a 0 reading show that it is at a minimum.

4) Long-term trend: I’m interested where the Large Speculators are headed. During a trend it is good to follow them, but of course at COT extreme levels, usually it is the Commercials who are on the right side of the market!

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