While the Commitment of Traders (COT) Report is not an exact timing indicator, it can aid in forex trading and provide a context for current and future market movements. There are potentially many ways to use the COT Report for analyzing a forex pair. Here is one COT Report forex strategy, along with basics of what the COT report is, and why it is worth paying attention to.
COT Report Basics for Forex Trading
Learn to read this report, as it shows you where the big money is flowing. It can tip you off to major turning points (extremes) and can also tell you when a trend is sound. It can also reveal in what assets the next major trends could be developing.
By George Papazov
Many traders assume the stock market to be this single entity which is logical, rational and knows where it wants to go.