My COT-Index-Analysis
I made a great analysis on forex and futures this week. The Commitments of Traders report was published on Friday 02.06.2017 – The COT-Index shows us in which way the commercials are spending their money in the financial world. An Index-reading of 10 and lower means that in the selected timeframe the commercials are now most short. A reading of 90 and above means that the commercials are the most long.
The Non-Commercials are the driving force in the financial world as they want to make big profits on market conditions. Understanding what the commercials are doing lets you anticipate what the non-commercials are going to do next.
My strategy is to go long on pairs where the index for the long pair is above 90 and the short pair is below 10.
I will combine this with technical analysis on trend and support and resistance.
3AUDCAD
Price just bounced off 1.0000. Trendline is confirmed by a strong engulfing pattern. Put your stop-loss below the trendline and trail it there. Seasonal entry with a nice CRV of 2,5:1
Seasonal: 71% up, avg 123 pips up and 52 pips down.
COT-Analysis
AUD’s index went upwards regarding the commercials. Now the Index shows 94-98 on 13, 26 weeks. No change on Non-Commercial positions so far. CAD is very strong with Index of 99 points on all timeframes.
