How can traders use the non-commercial institutions and bank’s positions to understand market dynamics
(With COT Data)?
As mentioned here, non-commercial position numbers, along with their buy and sell strategies, can reveal the main trends in the chart. By analyzing these trends, the next moves on the chart may become predictable. This is because non-commercial traders focus on generating profits rather than hedging their capital, as previously mentioned.
We have prepared a spreadsheet showing the number of positions taken by banks and non-commercial traders in various assets. This data is designed to help you understand price mechanisms and predict future moves on the chart. Here is an example of USDJPY.
Trading Strategy with COT Data
Weekly Price action and Cot Data
You can use these types of spreadsheets in two ways:
- It can be determined that when assets become overbought or oversold, especially within supply or demand zones, it serves as a strong signal of a potential price reversal—from an uptrend to a downtrend or vice versa. Since the bank’s data is updated weekly, you have sufficient time to plan and execute a trade based on your technical strategy.
This is an example of maximum buy positions in a weekly supply zone and how the price reversed from a weekly uptrend to a downtrend, which moved the price to about 2000 Pips.
Actually, it is already known that over 220k buys positions in USDJPY positions typically indicate that banks and non-commercial institutions are taking profits from their long positions. When the price reaches a supply zone, the likelihood of a weekly trend reversal increases, providing traders with an opportunity to enter their positions.
- When banks accumulate their buy or sell positions and begin a trend, it can be easily identified by reviewing this weekly spreadsheet over a period of two to three weeks. For example, in USD/CAD from September 10 to 24, 2024, it can be observed that banks and institutions increased their buy positions. Traders could have entered long trades on September 30 and earned 500 pips in profit, as illustrated in the following spreadsheet and charts.
COT REPORT
What we are offering as our services is an updated version of these spreadsheets every week for a wide variety of assets in forex, indices, commodity, and bond markets. Try to make your systems and strategies more efficient with these magical spreadsheets.
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David
CEO
David is a seasoned financial market analyst with over a decade of experience in forex, commodities, and stock indices. As a certified expert in Commitment of Traders (COT) and Commodity Futures Trading Commission (CFTC) data analysis, they specialize in interpreting institutional positions, including those of banks and hedge funds, to uncover actionable market insights. Their deep understanding of market trends, combined with advanced analytical tools, has enabled countless traders to develop profitable strategies and stay ahead in competitive markets. With a passion for empowering traders, [Manager Name] has built this platform to provide reliable, data-driven resources, ensuring users gain a strategic edge in every trade they make.
