.

Forget volume indicator: CoT indicator is for professional traders

#1
The forex market does not have an indicator to show real volume (like the stock market). That's why professional forex traders don't use the volume indicator. Instead they use CoT reports.

Attached you will find a CoT indicator + template + PDF manual.

Question:
Can anyone share
- more indicators based on CoT?
- links? (for example, websites with conclusions of net/gross positions, CoT bias for EUR, USD, EUR/USD)

More info:
- https://www.babypips.com/learn/forex/yo ... -indicator
- paid CoT indicators: http://www.cotindicator.com/indicators
Attachments
cot.tpl
(72.14 KiB) Downloaded 306 times
28-02-2015 EURUSD.pdf
(309.57 KiB) Downloaded 461 times
cotlib.mq4
(17.09 KiB) Downloaded 385 times
COTindicator1.9.zip
(330.18 KiB) Downloaded 438 times


Re: Forget volume indicator: CoT indicator is for professional traders

#2
You should know that there is no CoT for the FX market. It refers to the corresponding futures contracts. This only works on a local market such as the futures market. Since the FX market is organized decentrally, a report is not possible there.

The charts between forex and futures market are almost identical. For this reason, some traders use the CoT Report also for FX although in the report itself nothing is written about the forex market.

Actually, the CoT is a Volume indicator, as well. I hope that has become a bit clearer now.

https://www.dukascopy.com/swiss/english ... watch/COT/
http://www.timingcharts.com/

Re: Forget volume indicator: CoT indicator is for professional traders

#3
Hi all,

I found that the Volume POC indicator from the MT4 Marketplace approximates the COT very well. There is one on ESignal that is almost infalible in regards to helping understand where market orders for the Day/Week stand, but of course the MT4 volume readings only work if you have data from a big broker or broker network. If someone could create a better version it would help many.

Rumpus

Re: Forget volume indicator: CoT indicator is for professional traders

#4
Rumpus wrote:
Wed Jul 11, 2018 9:20 pm
Hi all,

I found that the Volume POC indicator from the MT4 Marketplace approximates the COT very well. There is one on ESignal that is almost infalible in regards to helping understand where market orders for the Day/Week stand, but of course the MT4 volume readings only work if you have data from a big broker or broker network. If someone could create a better version it would help many.

Rumpus
POC (Point of Control) is part of the MarketProfile, respective VPOC part of VolumeProfile. Together with VWAP you have interesting S/R and Zones between both where you are recommended not to trade. The reading of COT and POC is different as the source is. POC doesn't surrogation COT and res versa.
MP.png

Re: Forget volume indicator: CoT indicator is for professional traders

#5
Interesting that you guys mention POC trading. I actually have marketprofile in my trading templates that I use. It is in my template in the hopes it would be useful, but I'm not proficient with it. I understand that, in a bullish main trend, the N POC (naked POC) could be considered a TP target. Value Areas are usually for breakout, while POCs are considered a ranged market or bounce as far as I understood. But again, I'm new to POC trading and I would very much appreciate your insight if there is more to POC trading.

I do recognize that the EUR/USD price is not a good match with the marketprofile. For example, the buy/sell tails are not reliable in that sense from my experience. I wonder if you experience the same.


Re: Forget volume indicator: CoT indicator is for professional traders

#6
Krelian99 wrote:
Wed Jul 11, 2018 6:17 pm
You should know that there is no CoT for the FX market. It refers to the corresponding futures contracts. This only works on a local market such as the futures market. Since the FX market is organized decentrally, a report is not possible there.

The charts between forex and futures market are almost identical. For this reason, some traders use the CoT Report also for FX although in the report itself nothing is written about the forex market.

Actually, the CoT is a Volume indicator, as well. I hope that has become a bit clearer now.

https://www.dukascopy.com/swiss/english ... watch/COT/
http://www.timingcharts.com/
Thank you for your information regarding CoT. I really appreciate it. As there are many Elliot wave traders who analyse the WAVES in the charts for many hours, so too are CoT traders spending their time on calculating the total net positions (gross position) of the Futures EUR, USD and EUR/USD market. Elliot wave conclusions are popular among the published articles. I cannot say the same for CoT, but I'm sure they are out there.

Re: Forget volume indicator: CoT indicator is for professional traders

#7
Krelian99 wrote:
Wed Jul 11, 2018 6:17 pm
You should know that there is no CoT for the FX market. It refers to the corresponding futures contracts. This only works on a local market such as the futures market. Since the FX market is organized decentrally, a report is not possible there.

The charts between forex and futures market are almost identical. For this reason, some traders use the CoT Report also for FX although in the report itself nothing is written about the forex market.

Actually, the CoT is a Volume indicator, as well. I hope that has become a bit clearer now.

https://www.dukascopy.com/swiss/english ... watch/COT/
http://www.timingcharts.com/

Hi Krellian99,
I've just started looking in to using COT data for trading, still reading through the BabyPips info..
I found some online tools on this site, which I'm assuming is better than using the IG data given it comes from multiple brokers:
https://fxssi.com/tools/
They also have the tools available as MT4 indicators here:
https://fxssi.com/indicators/

I couldn't see and information or legend for the COT data on Timing Charts, do you know what data it is showing?
Am I correct that the Dukascopy chart you linked to does not include data for Commercial Traders?
Is it not critical to also know the positions of the Commercial traders?

I'm wondering if someone could make an indicator that includes both the CFTC and FXSSI data?


Who is online

Users browsing this forum: appsoluxions, asamulyanto, Baidu [Spider], CommonCrawl [Bot], friend4you, ionone, Mail.ru [Bot], Majestic-12 [Bot], moey_dw, mrtools, MyEatrades, rirayoza, Roper, sbellad01, tareq hussein, Yandex [Bot] and 41 guests