Commitment Of Traders Tool

Commitment Of Traders Graph 

Get a sense of what the banks are up to with the Commitments of Traders graph.

This graph displays the number of contracts (trades) that non-commercial traders—such as banks, hedge funds, and asset managers—have open in the market, as well as whether these contracts are open long or short.

Look for changes to understand the banks’ potential moves and to gauge the strength of the current trend.

IMPORTANT: Please Use The Link Below For COT Tool – Old Tool Has Been Discontinued

https://www.tradingster.com/cot/futures

How To Read This Chart 

So, you’re wondering how to decode this report, right?

Simple.

Keep an eye on the non-commercial numbers.

Compare them with the previous releases and recent price history. This will help you to determine if the banks are entering new positions or liquidating currently open ones.

For example:

If net-longs jump from 232,000 to a 241,000, that’s a clear sign banks are entering long. They’re expecting price to shoot higher. So, you might want to stick with the current trend or swing.

Now, on the other hand:

If net longs are falling, it’s a clear red flag. The banks are losing faith in the current uptrend. Brace for a potential price dip.

Just remember, price context is king!

Don’t get hooked on the numbers alone. It’s how the numbers change in relation to the price action which matters.

Stack up the latest number against the previous one.

Spot a change?

What’s it telling you?

Sift through the numbers. Look for trends. Watch the longs (or shorts) over time. Are they rising or falling? Is a sudden drop after a period of increase a hiccup or the start of a reversal?

Asking these questions while reading the graph will give you clues on the banks’ game plan, helping you predict future price movements.

So, dig in, and let the numbers do the talking!