OK - Who Can Explain How To Read The COT Reports

[CYOF]

Maybe we can all learn something of value if those with experience using COT data can please explain to us how to read these COT reports correctly.

What are the key figures to watch, and what do changes in these key values really mean?

Are the reports of any value - or - are we better off to view the data in graphical form as in the COT charts?

Maybe we can start by trying to get an understanding of what is the signifiance of the Net Extreme Level (116,115) in the E-mini S&P as @ 21Nov06 - chart No.3 below.

 

[Jack o'Clubs]

Hi CYOF - I think you know how I use them , but you might find this thread useful - pretty much what you want to know is in there, or linked from it.

http://www.trade2win.com/boards/showthread.php?t=20507&page=1&pp=10&highlight=COT+report

 

[CYOF]

Hi JOC,

Thanks for the link - I must start searching this site before I post new threads in future

Some good info over in the FX section on COT, and maybe the best approach, as most seem to agree on, is to bin them?

I would still like to see a detailed analysis for the E-mini S&P - using all 3 reports - to clearly understand what these figures mean.

We all will more than likely agree that it is much better to focus on the Current Charts, as they represent what is happening right now, but as these reports are used by the big boys, it can't hurt to at least understand what they mean and then see if one can extract any value from same.

Open mind theory again - the learning should never really stop. Just because I learn something new about the markets, does in no way mean that I have to use that information in my trading, but it broadens my overall view of how the markets really work, and this can't really hurt, providing I realise that what I am doing, is educating myself.

Lets see if anyone wants to take on the challenge of giving a detailed analysis for the E-mini S&P, as per the three charts posted.

Regards,

 

[barrytaylor]

Hi CYOF

I trade Eminis and check the Commitment of Trader reports weekly. I've added a page to my site that explains how to use the data. It includes:

1. Raw data and how to manipulate it
2. TradeStation functions and indicator code
3. COT Commercial net position indicator and oscillator

The Excel spreadsheets and EasyLanguage code are free to download.

http://emini-watch.com/free-stuff/commitment-of-traders/

Hope you find the information useful.

BT

 

[CYOF]

Hi Barry,

Thanks for the details.

I must say, your website is very well put together.

Will have a more detailed look when I get the time.

Regards,