September 2005
Intermediate to advanced
225 pages
5h 8m
English
Content preview from Trade Stocks and Commodities with the Insiders: Secrets of the COT Report
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O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
CHAPTER 10
A Unified Theory of COT Data
It’s all very well in practice, but it will never work in theory.
It’s time to start to put the pieces together to fully understand the “Commitments of Traders” (COT) reports and create an indicator we can use—one that encompasses what we have come to know about the commercials, large traders, and small speculative traders. Heretofore, the industry has simply looked at the net commercial position or used the three-year look-back index discussed in Chapter 4. It is now time to go beyond these indicators and take a step forward.
What I have found to work better than the old indicators is to look at the commercials as a percent of open interest (OI), as opposed to just looking at the commercials versus themselves. We want to look at them versus all market action. Thus when OI is increasing and it is the commercials doing the increasing by adding short sales, a market peak should be close at hand, and vice versa.
Let me introduce this with a trade setup I saw, and wrote about for the leading financial paper in Japan. What you are about to read was written the last week of November 2004. Not a word has been changed. This is exactly what traders all over Japan read in early December 2004.
While the forecast is interesting, please pay attention to the indicator explained, as we will be doing more work with it.
The Future of the Japanese Yen
Businessmen as well as speculators are wondering what will happen next in the yen, and for the most part, ...
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O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.