COT report can easily be used for trading. Of course by looking at it no one can say that but why else would I tell you about it if we couldn’t use it for trading, right?
Well, let’s see. If everyone is selling that means that sooner or later the market is going to come to the point where selling is not an option anymore. And the buyers wake up then. That is where one can get thousands of pips.
By looking at the sentiment indicator you can spot positions like that and PROOOFIT!
- Blue - commercial traders
- Green - large non-commercial
- Red - small non-commercial
You can see how traders picked up euro from 1.24 to 1.47. That was a pretty neat hike that brought a lot of money to some people.