Hi Shahab,
Thanks for the links. Let me see if I got this right...
when there is change in net positions from positive to negative (or vice-versa) and COT index is extreme, then go with the trend.
when the change in net position is in the same direction (positive or negative) and COT index is extreme, go counter trend.
Is the above correct? If it is, then could you please answer the Yen question below ...
Last 3 Net positions: 10161 -> -30866 -> -42305
COT index: 0.00
From what I understand, the first change from positive to negative signified trend change (short JPYUSD=>long UJ). However, the reading is more extreme negative now. So, shouldn't I consider counter-trend trades, meaning long JPY (short UJ)?
If the answer is no, then could you specify when you consider counter-trend trades in such situations.
Thanks for the help..
Thanks for the links. Let me see if I got this right...
when there is change in net positions from positive to negative (or vice-versa) and COT index is extreme, then go with the trend.
when the change in net position is in the same direction (positive or negative) and COT index is extreme, go counter trend.
Is the above correct? If it is, then could you please answer the Yen question below ...
Last 3 Net positions: 10161 -> -30866 -> -42305
COT index: 0.00
From what I understand, the first change from positive to negative signified trend change (short JPYUSD=>long UJ). However, the reading is more extreme negative now. So, shouldn't I consider counter-trend trades, meaning long JPY (short UJ)?
If the answer is no, then could you specify when you consider counter-trend trades in such situations.
Thanks for the help..