How To Read The COMMITMENT OF TRADERS - COT Report

welcome to my videos today I will be sharing with you exactly how you're supposed to be reading the border flow of hedge funds in the market so the commitment of traders now if you don't know what that is that is the positioning of the biggest speculators in the market so basically they a sum of all their long positions and short positions in the market and if you are able to understand how they are trading the market you can follow them okay following the big boys in the market and basically you will have an edge over your competitors so I suggest you watch the video until the end because it will be filled with value now if we new to the channel I'm a deposit on the trading platform in a share free education and analysis on all my platforms so I suggest you subscribe and I will see you in the video [Music] okay so today we will be speaking about a very important topic I got asked about making this video of many many times so here it is today we will be speaking about how you're supposed to be reading the co T data so the commitment of traders what hedge funds are doing in the market now you all have access to this information now specifically this up that we have here that automatically collects the data this is accessible from the student dashboard so as part of the metric program but you all have access to this data they already okay you only have to know where to get it and how to build it but it's it's data that is there for you on the internet to get but you have to know how to relate it to the chart having the data alone means nothing if you don't know how to read it and most importantly related to what is going on in the market and that is exactly what what we will be speaking about in this video and why I am making it now if you have watched my analysis in the past I make I publish a lot of analysis and if you haven't by the way I suggest you go and check it out on my youtube channel training view yeah and all my platforms you will have noticed that I use this a lot and why do I use it a lot because if you have informations on what hedge funds are doing because they're forced to report their positions you can be trading with them if you know how to read it and get most importantly how to relate it to what is going on in the market so from a price action perspective now hedge funds are winning most of the times so if you can trade with them you definitely have an advantage over your competitors in the market just a quick reminder make sure you comment below and you let me know which pairs topic you would like to cover in the next video before I go straight into explaining the different kind of situations that in my experience are the best a in relating co2 data and price action for example I want to show you how we predicted this move to the upside on eur/gbp now training is not predictive trading is pre active but we were looking for the possibility to be reactive in this case from an entry perspective after this distribution to the downside for the move to the upside if you remember we spoke about this possible bearish trend developing on the pound many many times I will publish all those links in the description of this video and you can go and watch those analysis before this move happened so that you can basically understand how again using price action and suit data is very very effective and we were able with students to bank both on the move to the upside on a euro GDP and also on the move to the downside on GBP CHF obviously they are correlated but let's speak and we're speaking about 1 2 3 1 2 4 raised to the word on these moves but let's speak about which are the best ways to relate co2 data and price action so this are these scenarios that are the best if you have a market that is moving to the upside so you have a bullish trend developing in the market and during the move to the upside you see from an order flow perspective hedge funds closing their long positions but not adding shorts ok so move to the upside they're closing their lungs but they're not adding shorts yet what will happen is that after the market makes the move to the upside the market will start a distribution area in which they will actually start adding their shorts and then the market will make a move to the downside so if you see hedge funds during a move to the upside in a marketing as in a certain pair does it really matter which one it is you see them close their lungs but not at shorts yet expect a distribution so basically a consolidation area with a lot of rejections in there is we have to be looking for your short according to the rules of your own strategy because very soon the market will start a move to the downside another scenario the market is trending to the downside hedge funds you see them clothes shorts so - thousands of positions but they're not adding Long's yet what do you expect you expect ah here in this case you expect an accumulation area so an accumulation pattern a lot of rejections a clear deceleration because inside of this pattern they will be adding their long positions so you have to be looking for potential lungs instead of this area according the rules of your own strategy and that is exactly what we had here on your GBP okay we wanted to see inside of this area hedge funds ad shorts on the pound which is exactly if you remember what we were seeing we were seeing them basically it add a short positions from a GBP per sec perspective thousands of short positions added look at how many short positions added thousands of short positions added from an institutional perspective so you expect shorts on the GBP so bullish euro GBP and you want to see the market then make a move to the upside these are two scenarios in which the market is trending in one direction hedge funds close their positions in one side but don't open the trades yet so expect in accumulation or distribution pattern before the market moves in the opposite direction and this is what we had now a what happens if during a move to the upside so let's go back here the market is moving to the upside hedge funds are closing lungs and opening already shorts so here they weren't opening shorts yet here they are closing lungs is here but they are already opening shorts in this case you expect a shift that would be very fast so you can already be looking for shorts if only for our your rules for entry will be satisfied as soon as your rule for entry in this case are satisfied I suggest you immediately enter because the market will change direction very quickly because they are loading up their show positions already during the move to the upside and same thing if the market is moving down if in a bearish trend in market hedge funds are closing their shorts and adding belongs expect a quick conversion to the opposite side so be ready from a forever perspective to monitor price action according to rules of your own strategy obviously with students we have our own rules for entry and as soon as the market satisfies your rules be ready to enter because the market will quickly change direction now again another is situation that can happen in the market in a trending market for K the market makes in impulse as you know the market moves in impulses right impulse and correction impulse correction impulse correction the most common pattern in market so creating lower lows and lower highs let's speak in specific about these impulses and corrections if you have a market that is moving to the downside so makes an impulse to the downside makes a correction and after the impulse during the correction hedge funds are adding lungs but not closing their shorts so you have a market that is impulsing to the downside starts a correction hedge funds are longing but they're not closing their shorts if they are lucky they're just longing to show this correction make many retail traders buy so that they can use their liquidity to actually open more shorts and continue with the move to the downside okay that is what they're doing they just want to make people die so that they can continue to write their self orders because as you know they need to generate the liquidity to actually trade because there isn't enough liquidity for them to just trade the market they have to generate it and how do they generate liquidity to add more shorts they just too long a little bit so that people start to buy and at that point they sell again and use your money to actually sell again so if you during a trending market they don't close their their shorts during a bearish trend in market during a pullback open lungs but they don't close their shorts expect continuation to the downside on the other side if during a bearish trend in market they close their shorts but they add lungs is back to the situation here you want to see any version of the trend okay very simple concept now if during a a bullish trend in market after an impulse and the correction starts and hedge funds start to a open shorts but not closing their lungs what do you expect same situation as before you expect the continuation to the upside on the other side if they are closing their a so if they are closing their lungs and opening shorts then obviously you expect any version of the trend and continuation of the downside to the downside so these are some very basic concepts when it comes to reading the suti data and applying it to what you have from a price action perspective definitely all of you should know now I try to go a to explain as much as possible in this video obviously following my analysis every day on all my platforms will help you understand better how to apply what you have from a suti perspective to the chart but obviously the next level is then achieved the mentorship program because my strategies are most effective if everything is done according to our rules because that is what is tested and what it works best for because all strategies that we trade are tested for at least 5 years in the past class live tested for at least one year before the get ever shared with members and that is what you're supposed to be doing as well if you want to develop your own strategy you have to test it at least 5 years in the past at least six months in life trading to prove it profitable and then you can put some real money into it real capital into it and the more you put the more you make because in the end it's just a game of percentage if you enjoyed the video make sure you smash that like button and comment below it really does for the creation of more free content on all my platforms as well as going and checking out the metro ship program you'll find the link in the description is a very complete program you first learn all the rules of my strategies and then you trade them live with me each and every day I give you a new daily market breakdown showing you how to apply the strategies with entry stops and take profits as well as answering every question that you have each and every day so you can click the link and go and check it out or I will see you in the next video [Music]

Channel: Transparent Fx Academy

Views: 59,538

Rating: 4.9015899 out of 5

Keywords: transparent fx, Akil stokes, Astrofx, trade empowered, forex trading, structure trading, forex strategies, forex, How to trade forex, price action trading, Trading strategies, Motivfx, full time forex trader, forex trader, forex trading for beginners, technical analysis, market structure, forex patterns, trading, trendlines, forexholygrail, fibonacci retracement, support and resistance, learn to trade, forex trading strategies, price action trading strategies

Id: 2EpSaM2H540

Length: 12min 40sec (760 seconds)

Published: Sun May 24 2020