MetaCOT 2 is a set of indicators and specialized utilities for analyzing reports of the U.S. Commodity Futures Trading Commission (CFTC). Thanks to the reports issued by the commission, it is possible to analyze the size and direction of the positions of large market participants, which brings the accuracy of long-term price forecasting to a new, higher-quality level, inaccessible to most traders.

These indicators related to fundamental analysis can also be used as an effective long-term filter when entering a medium-term position. To do this, they should be combined with the classical price analysis.

COT Index is the most popular, effective and simple indicator for determining the extreme points of overbought and oversold market. It is calculated based on the data on the net positions of traders taken from the COT (Commitments of Traders) report using the Stochastic oscillator formula. The indicator values from 0% to 20% and from 80% to 100% indicate moments of extreme overbought and oversold market, signaling a frequent price reversal after reaching these levels. The calculation is based on the net positions of commercial, non-commercial and unaccountable traders, as well as open interest.

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For more information about how to use this indicator, read the book by Larry Williams: “Secrets of trading in the futures market. Act together with insiders”, as well as in the article of the same nameMeta COT project – new horizons for analyzing CFTC reports in the MetaTrader 4 terminal.

Below are the indicator parameters and their values:

• Source of Report – Type of COT report. There are two types of reports: Futures Only and Futures And Options.);
• Group of Traders – A group of participants in the COT report. Includes the groups listed above;
• Release Day-sets the day of the indicator update. If the default value is ‘Release by Friday’, the indicator updates its values on Friday (the day of data publication). If the value is ‘Release by Thursday’, it is on Tuesday (the day when the data was received).
• DataType-selects the data to build the indicator. With the default value, ‘Contracts of Traders’, this indicator calculates the quantity-based contracts, with a value of ‘Number of Traders’ based on the number of values number of traders.
• Subgroup of Traders – A subgroup of participants. It is divided into all (All), old (Old) and other (Other);
• Period of COT Index – The period for calculating the COT index. Recommended values: 25, 52, and 156 weeks;
• Auto Detect Report Name – If this parameter is true, the indicator automatically loads the report corresponding to the symbol of the market on which it is launched. If no report matching the current symbol could be identified, the default report specified in the Report Name parameter is loaded;
• Report Name – The name of the report to load if the Auto Detect Report Name parameter is set to false. For the report name, specify the name of one of the MetaCOT database files without the file extension.;
• Mirror Mode – Mirror mode of the indicator. If it is true, the highs of the indicator become the lows, and the lows-on the contrary, the highs.

This indicator can be combined with other indicators of the MetaCOT series, including displaying several groups of participants in a single, common indicator subwindow. Thanks to this, high flexibility is achieved when conducting fundamental and technical analysis of the market. It is important to understand that this indicator is best used in conjunction with other indicators of the MetaCOT series, thereby producing the most accurate and comprehensive analysis of the fundamental picture of the market.

For the indicator to work, you need to download and install CFTC reports on your computer, for which you can use the specialized report installation utility MetaCOT 2 Install CFTC Reports MT4.

You can learn more about the values of the indicator settings in the blog “MetaCOT 2: Settings and Possibility“.

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