Forex Trading Strategy Best for Low Risk and High Reward COT Techniques

how come this videotape which is all about a trading tool and indicator which I consider essential to look at in terms of my trading strategy each week now it is totally free for anyone to use yeah, if I was asked to pay a few thousand dollars for it I’d have no hesitation doing, so why, because it’s just, so valuable to me over the years it’s helped me spot high alts turning points in the markets and also given me the confidence to ride some really big trends, so what is the tool the tool is the CEO T the commitment of traders report issued by the C F T C now in terms of the report you can use it as a backup to your charts it will reinforce chart formations you I mean it will filter out the best ones it’ll also give you an idea of how far trends might run now in terms of my weekly Forex forecasts I very often mention the CFTC net traders mentioned it a few times this week what, I’m going to do, is just give you a few examples of how the CFTC report helped me make the last Forex forecast or it will come up with my trading decision, so first what I want to do is just give you a brief view of the report and a brief introduction to how we use it, and then, I’m going to be back in a more detail to discuss it now, I’m going to show you some charts with the CFTC net traders and how they reinforced the chart formation, so just the quick intro to the CFTC net traders, and then I’ll be back to discuss in more detail and give you some examples of how powerful a tool it really is here a sample pair from report euro GBP I’ve highlighted one group in red non-commercial they hold over five times as many Long’s as shorts, so heavily bullish the other side me up the commercials run bobs, if you they have three times many shorts as long, so bearish now this divergence between the groups is very important just going to summarize the CFTC report generally and us why the divergence is important and I’ll be back to discuss you welcome back after short intro later the cftc no traders then what we want to see is non-commercial speculators heavily long or short in one direction opposed by the commercials now just want to mention the group the non-reportable group of small speculators I don’t consider that group, so important you know it’s very small group it’s a very diverse group, if he’s going with the non-commercial, so large speculators that adds a little bit of weight, but I tend to discount that group just too small and diverse now in terms of you know my trading history I’ve seen the commercials get every major turning point right now in terms of then getting every major turning point right you might be thinking well, let’s just follow the commercials, but we can’t do that there’s a reason why don’t just go in and just follow the commercials, because we’re going to keep in mind is they are hedges they are never losing money that is going against the cash they’re hedging their cash in a case they could be wrong for a little while while the currency overshoots and it doesn’t hurt them of course it will hurt us, so what we have to do is use our charts in conjunction with the net traders reports now in terms of fun yeah my forecasts leaded this week I’m just using it as an example it’s not the perfect week for using the net traders it’s not the worst week, so what I want to do now is give you some examples of the net traders and how I use them with my charts and for the purposes of illustration, I’m going to do today is I’m just going to use a 20 day moving average and I’m only use a couple of indicators RSI stochastics, I’m going to use the MACD day MACD sorry today recent museum a CDs anyone who uses indicators it’s the most popular one, but what we’ll do now is we’ll just look at a few charts and just mix plain how the CFTC net traders banked up my technical view and allow me to get some what I consider to be really good holds entries, so here’s the examples, and then we’ll be back to sum up right first charters aud/usd and accept a note top of the chart there I’d spotted are the commercials and speculators having a big divergence speculators buying heavily commercials selling and did was an 8-month extreme, so when that triple top formed keen to get in came in at seventy seven seventy now prices obviously moved down nicely I’ve drawn in seventy five support level and yeah at the time I don’t know, if that support level was basically going to give a good break out to the downside or whether it be a failed breakout, so that’s where last week’s meet traders were important to me and looking at the positions I can see that the non-commercial speculators are still holding twice as many logs as shorts despite the fact they got hit on the turn and they’ve actually added sixteen thousand two hundred and fifty long contract since they’re trying to buy the dip commercials on the other hand are a short by three to one and basically what they doing the opposite of the speculators they’re adding to their shorts they put in thirteen thousand seven hundred and forty, so that to me signifies that I can hold on with confidence and that the downtrend should continue and of course we move down towards the seventy two net will another three hundred pips, so that’s giving me the confidence I’ve already had a decent profit coming into the seventy-five level gives me the confidence the hold now still plenty of potential on the downside in my view yeah we’ve got to target there of sixty nine chart lows however yeah from the longer-term perspective run with you my weekly monthly charts I’ve got 65 as the ultimate objective, so no traders here allowed us to get in at a great turning point and have given us confidence to hold up the trade on the way down, so for us some you I’m sure everyone which the strengthening those that we love the short side of the LZ dollar what we can do now of courses we can just tuck our stop in lock in a profit and normally we’re putting it behind 20-day moving average 20-day moving average were normally act as resistance in a downtrend or support in an uptrend, so hopefully this one goes the target right, let’s move to the next shot right now we have a usd/jpy chart now before I discuss the chart I just won’t discuss how net traders are presented by the CFTC you’ll see them on the chart and it’s Japanese yen V USD in terms of the CFTC net traders they always have the foreign currency first obviously we’re trading usd/jpy now in terms of the chart itself already interested us as two big red candles down in May and that correspond it are with the biggest net long yen position of speculator since 1992, so the speculators going yeah heavily long the yen and short the dollar, and you see a big fall down the look to the CFTC’s at time and you can see the commercials are going the other way they’re selling the yen and buying the dollar so, but we’re going to do now just wait for signs of what a look around the 106 level we got in 106 a for taking see they’re Magdy trigger line turns up as well and basically got long no in terms of the CFTC report I’ve got on this chart it was important to us it’s the next one out we want to see how the positions of change well they haven’t changed that much our non commercials still very bullish of the yen ha nearly three times as many Long’s of shorts on the other side commercials still short the NI bulk obviously bullish the daughter holding twice as many short yen positions as Long’s now that’s important to us, because you can see the 20-day moving average where prices stall yet, the 20 move average very often acts as resistance in an uptrend of support in a downtrend, so is this resistance going to hold or break well our reading of that report up we basically are going to hold we see more upside and basically what we got is a pop above the 20-day moving average and now hopefully it’s going to run on target regardless of what happens miss trade will still come out with a profit we’re just going to tuck our stop behind those five sideways candles or is it six six sideways candles apologies, but hopefully we run to target, so another nice opportunity allowing us to get in right at the turn than having the confidence to hold it through a level of resistance, the final chart euro GBP what you’ll notice on this chart is we had a peak in March and a really nice run down into the end of April and basically you then see the market rally up as we come in to May rallying back to resistance and you’ll see I’ve got a resistance line and the 20-day moving average there now as I’ve said you in a downtrend are yeah basically that 20-day moving average will act as a level of resistance we run o Easy Connect as a level of resistance on this chart well CFTC net traders are going to give us clues we can see in terms long commercial speculators holding five times as many Long’s as shorts commercials opposed them holding nearly four times as many shorts as Long’s now we came in on the first poke back below the three day moving average it doesn’t break for a straightaway, but we’re quite confident holding this one and see we go sideways, and then we snap through the average we hit our first target at 77 and now we think we will run on down to support now this just is another example of how the CFD CNET traders just adds weight to the chart it gives you clues into where prices might go and this one, so far, so good, so that completes the three examples welcome back after those three examples of how to use our the commitment to traders report with your charts you see a very useful tool in helping you isolate high on sentry points also give me the confidence to hold the big trends now in terms of those three trades you can see why I would pay thousands of dollars for it, if it wasn’t free there’s nearly a thousand pips on those three trades alone, so a very valuable tool now in terms of the CFTC egg traders you actually find them reported on Reuters each week and what they do is they always report what the speculators are doing they never ever mention what the commercials are doing what the speculator is doing on their own doesn’t matter yeah it has to be seen in association with what the commercials are doing, you need to see those divergences one point I’d make is I’ve got no problem trading with the speculators yeah the only time I get weary of trading with the speculators the commercials really opposed them on the other side with a big position that’s a warning sign for me, but yeah I’m quite happy to trade the insane ways to speculators as well now in terms of the report I strongly urge you to go read it basically it uses the different ratios exist in different currencies and the way the commercials and speculators change their positions to get a feel for, if a currency is over undervalued of course you can read my weekly report as well ah, but a very valuable tool it’s an underrated tool for sure I would say it is probably one of the best indicators around and yeah you’re getting the opportunity to track smart money the commercials are definitely smart money in my view they’re always right those big turning points that will never ever change they’re not motivated by greed they’re not motivated by fear they’re just haters hating a cash position on the other side the funds they are always going to hold trends too long and they’re always going to get it caught out at the turning point, so we need to basically go with the commercials, but make sure we use our chance and employee good money management, because as I’ve said the commercials can be wrong when a currency overshoots they’re not losing any money, so tight money management is always needed, but yep I can’t that you say again a wonderful tool up I hope you go and explore CFTC make traders for yourself that over the years made me a lot of money got me some great trends and I’m sure they can do the same for you, so that’s beautiful thank you for watching this video and I’ll speak to you soon.

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