So. Market sentiment together with COT report are behind us. I am sure that although you have learned a lot of interesting and VERY useful stuff you are going to look for ways to avoid COT report and all of the calculations altogether.
And I am not judging you.
Although COT report indicator is not built in the trading platform there are programmers who have made such a thing downloadable and installable for your trading platform. And what does that mean? That’s right! That means that you won’t even have to count everything by yourself! And that is the coolest thing I hears all week!
But one way or another we have to look back at the summary for the market sentiment.
Remember that COT report measures the sentiment od traders in a specific period of time. That means that it can answer such an important question as: why the reversal took place; how is the economy doing; is it recession or economic boom right now? All of these questions are important and need to be answered.
Final point on market sentiment are as follows:
- As forex traders, our main task is to know what markets are doing and how they are feeling;
- One way to know that is via the Commitment of Traders Report;
- By understanding the actions of commercial traders, non-commercial and retail traders we can see better positions and look for tops and bottoms;
- Every market top or bottom goes together with sentiment extreme, but not every sentiment extreme goes with market top or bottom.