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Originally Posted by stu
I have recently been reading up on how useful currency futures COT data is for determining positions of large speculators and how the FX market moves according to their involvement. There are indicators available for futures traders representing COT data, has anybody heard of or could produce an indicator that would provide signals involving this valuable data inside FX charts?
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Hello Stu,
Yes COT Data can be very useful. Some very big high rollers use this data to trade alone. Although I do not, I have seen it been done. I think the COT data is only availble at specific time though. If im not mistaken, which i might, its a graphical representation of commercial traders, non-commercial traders, and smaller retail traders. The way I see it used is similar to a moving average cross over system. But, I beleive this will only be relative to long term trading. Attached is a picture of the graphical indicator. I found it an a currency trader article. It might help. Good luck.
- secXces