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Update Google ChromeThe market has feelings too, you know. Get ready to learn all about market sentiment!
Every trader has his own opinion about the market. The combined feeling that market participants have, that’s what you call market sentiment, young Padawan.
Gauging market sentiment may not be as difficult as you think. The Commitment of Traders (COT) report can be a clue on whether the market is bearish or bullish.
Now let’s get to the juicy part. How do you get a hold of the COT report? It’s as easy as 1-2-3, baby!
Meet the different playas in the futures trading field: hedgers, large speculators, and small speculators!
The COT report looks like a giant gobbled-up block of text. But don’t fret! There’s actually a pretty simple way to use it.
When the market sentiment shifts, should you go with the speculators or the hedgers?
Studying the School of Pipsology is about to get sweeter! Are you ready to create your very own COT indicator?
Put your thinking caps on because we’re gonna get down and dirty with the numbers to calculate for the percentage of speculative positions!
Keep in mind that although the COT report is a spankin’ sweet tool to use in gauging market sentiment, it does not always correlate to reversals.