DislikedThank you. I value all positive thoughts, ideas and feedback. The best learnings usefully come from an angle that challenges existing thought patterns.
COT data in FX is not as reliable as is in commodity futures (wheat, gold, cattle, etc). I agree with you. You can find just as many instances for when it works as when it does not in FX. I agree with you. Is it totally useless?
I pointed out two instances where COT data may be used to advantatage, and those do not occur very often, in fact rarely do they occur. It just happens...Ignored
Reason i ask is even with the above conditions it appears to work half the time (or maybe its just me) .... for instance take GU it probablly fullfils criteria for condition number 1. Its been heavily short by the commercials three year highest commercial short positions but continued to rally almost 250 pips already in the last 2-3 weeks and last weeks COT data indicates the commercials are now reducing their shorts.
So I'd like to ask are you taking trades solely based on interpreting the COT report or is it a combination of other forms of analysis as well.