Overview. -This is the Beginning of a Educational Series from Jake Bernstein to the TradingView Community. -Many Traders use the COT Data Incorrectly. -Jake Discovered if You Look at the Net Commercials and Take Note When Commercials net Buying is Either At All Time Highs, Or Net Buying = Longest Period of Buying Look for an Extreme Move To the Upside. -In The Future We Will Show Precise Entry Signals…But a Basic Entry Signal Is When Commercials Go From Net Long to Net Short. -Full Credit in Methodology goes to Jake Bernstein at Trade-Futures.com and 2Chimps.net
Thought Process: -Commercials Represent Large (Typically Billion Dollar) Companies. -Take Note - When Commercials Are Buying at Record High -Take Note - When Commercials Are Buying For Record Long Periods of Time ***Note…Commercials Can Buy For Extended Periods Dollar Cost Averaging… ***Basic Entry Listed In Overview. ***More Precise Entries Will Be Introduced Soon.
Take Note When Commercials STOP Buying and START Selling
Indicator Shows Net Commercials -Full Credit goes to Greeny for Creating Original Code. I only made slight modifications.
Lower Indicator Modifications include -Took Off Net Long and Short Individual Plots -Added Optional Background Highlighting when Commercials Switch from Long to Short -Added Optional Alert Capability If Commercials Go From Net Long to Short -Ability to Show INVERSE - This makes it Easier for some Traders to See…Since the Signals look similar to MacD/RSI Type Indicators.
Upper Indicator Modifications include: -Added Ability to Plot Text Entries when Commercials Switch From Net Long To Short -Added Optional Background Highlighting when Commercials Switch from Long to Short -Added Optional Alert Capability If Commercials Go From Net Long to Short
***Additional Indicators and Updates Coming Soon
***Link To Lower Indicator & Upper Indicator Below Under Related Ideas:
sorry but how do you provide the indicator exactly? can it be purchased?
ChrisMoody
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I charge timwest...but you can have them for free....just go to the top of the page and the links for the indicators are under Related ideas
timwest
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Good one! It's worth every penny to pay for Chris' advice, indicators and insights, which is why I charge for mine too.
Legit_Kittens
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Very nice! Looks like the buying has finally shifted to selling by the commercials. There looks to be big profits still to be made! Thanks Chris! All your scrips are money!
GeorgeMyforex
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Chris,
Can you get the COT to work with copper, oil, Nikkei, us dollar?
GPFromChina
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I thought non-commercial interest is useful predicting the price move direction...
Xilpa
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Chris, impressive work - well done and thanks!!
Sinuhet
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Dear Chris thank you for this work. Just wondering, because the absolute amount of Commercials and/or their positions change over a time, would not be better to express the same as "COMMERCIALS NET POSITION AS A % OF OPEN INTEREST"? Tome McClellan does it in this way (here example: mcoscillator.com/learning_center/weekly_chart/commercials_betting_on_big_dollar_downturn/) and he is consistently over years one of the best forecasters.
ChrisMoody
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In no way trying to disagree with you...but I paid for McClellans weekly and Daily outlooks for years. if you get hi sfree newsletter he is GREAT at posting charts historically that look great...but when you pay for the daily analysis where he actually has to make a decision...below average.
His family (His Father) was difinately one of the key influential people who brought technical analysis to become widely accepted. I have respect for Tom...he finds great correlations. But over the years I've found ONE Thing to be a RED FLAG. he posts historical results...but I've never once seen him post a live account statement of what he makes from trading. I've never even see him post a fake account statement on predictions he's made...and track the actual results in real time. I have to believe he makes 100% of his money from his newsletters.