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.

The Williams Commercial Index, abbreviated Willco, was developed by Larry Williams and is the most advanced version of the classic COT Index indicator. Unlike the latter, Willco takes into account not only the extreme values of the groups of participants, but also correlates them with the general open interest. Thus, we can say that Willco is a classic COT Index indicator weighted relative to the entire market. Like the latter, it is an oscillator and changes its values from zero to one hundred percent. 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 data on the net positions of traders (see the MetaCOT 2 Netto Positions indicator).

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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 name, The Meta 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 – group of participants in the COT report. Includes the groups listed above;
• Release Day-sets the day when the indicator is updated. If the default value is ‘Release by Friday’, the indicator updates its values on Friday (the day the data is published). 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. If the default value is ‘Contracts of Traders’, the indicator calculates the values based on the number of contracts, and if the value is’ Number of Traders’, it calculates the values based on the number of values of the 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 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 false. As the report name, you must 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 should be combined with other indicators of the MetaCOT series,in this case, a higher accuracy is achieved when conducting fundamental and technical analysis of the market.

For the indicator to work, you need to download and install CFTC reports on your computer, for which you need to 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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