5 & 60 min system.

Does anyone know about COT charts

I was at a meeting where someone was speaking about them. I just do not really know what to do with them. If they are "the smart" how do we use this information.. I understand the 3 groups & the two parts to the report.

But when do we buy or sell?
I was thinking if Com. traders (the really big guys) are short on positions
but long on the COT itself It would be a great time to buy?
That is the best I can come up with? But maybe I am missing something.

Also what is the lead time you see this money start to effect the market?
Months- weeks- days .. I don't believe it would be hours.

Anyone know?

I have read a few things on COT, but they never seem to give more then general information. ie say with the Com. traders stay away from the small traders.

Does anyone have some other Ideas?

Thanks

Dan

Danx, your enthusiasm is contagious.... If you or anyone else could post a chart with recent success with your system, It would bring a better understanding to your set up.... Great thread, Mike

Danx,

Correct me if I'm wrong, but it also looks like you could just use the 50 EMA/50WMA as signals as long as you have a stop....1 HR TF

For example, on the EUR/USD the last short on the 1HR would have been Feb 26 around 127.50 until Mar 9 around 126.

Then long Mar 9 around 126.50 until today maybe around 135. Looks like a short will signal today or tomorrow.

What are your thoughts on this?