{"id":9805,"date":"2022-10-13T05:10:39","date_gmt":"2022-10-13T05:10:39","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=9805"},"modified":"2022-10-13T05:10:39","modified_gmt":"2022-10-13T05:10:39","slug":"how-to-pick-tops-and-bottoms-with-cot-report","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/13\/how-to-pick-tops-and-bottoms-with-cot-report\/","title":{"rendered":"How to Pick Tops and Bottoms With COT Report"},"content":{"rendered":"\n<p>As you would\u2019ve guessed, ideal places to go long and short are those times when sentiment is at an&nbsp;<em>extreme<\/em>.<\/p>\n\n\n\n<p>If you noticed from the previous example, the speculators (green line) and commercials (blue line) gave opposite signals.<\/p>\n\n\n\n<p>While&nbsp;<strong>hedgers buy when the market is bottoming, speculators sell as the price moves down<\/strong>.<\/p>\n\n\n\n<p>Here\u2019s that COT report chart again:<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/bpcdn.co\/images\/2016\/05\/freshman-cot-indicator-eur-globex4.png\"><img decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2016\/05\/freshman-cot-indicator-eur-globex.png\" alt=\"COT Report to Find Market Extremes in Sentiment\" title=\"COT Report to Find Market Extremes in Sentiment\"\/><\/a><\/figure>\n\n\n\n<p>Hedgers are bearish when the market moves to the top while speculators are bullish when the price is climbing.<\/p>\n\n\n\n<p>As a result,&nbsp;<strong>speculative positioning indicates trend direction<\/strong>&nbsp;while&nbsp;<strong>commercial positioning could signal reversals<\/strong>.<\/p>\n\n\n\n<p>If hedgers keep increasing their long positions while speculators increase their short positions, a market bottom could be in sight.<\/p>\n\n\n\n<p>If hedgers keep adding more short positions while speculators keep adding more long positions, a market top could occur.<\/p>\n\n\n\n<p>Of course, it\u2019s difficult to determine the exact point where a sentiment extreme will occur so it might be best to do nothing until signs of an actual reversal are seen.<\/p>\n\n\n\n<p>We could say that speculators, because they follow the trend, catch most of the move BUT are wrong on turning points.<\/p>\n\n\n\n<p>Commercial traders, on the other hand, miss most of the trend EXCEPT when price reverses.<\/p>\n\n\n\n<p>Until a sentiment extreme occurs, it would be best to go with the speculators.<\/p>\n\n\n\n<p><strong>The basic rule is this: every market top or bottom is accompanied by a sentiment extreme, but not every sentiment extreme results in a market top or bottom.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As you would\u2019ve guessed, ideal places to go long and short are those times when sentiment is at an&nbsp;extreme. If you noticed from the previous example, the speculators (green line) and commercials (blue line) gave opposite signals. While&nbsp;hedgers buy when the market is bottoming, speculators sell as the price moves down. Here\u2019s that COT report [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[772],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9805"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=9805"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9805\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9805"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9805"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}