Disliked{quote} since the beginning of this week, eur are very bearish.. If COT was true , there are balance between seller and buyer,can i assume that, buyer (based on COT report) are not yet enter the market ?Ignored
For the buyer to step in there would have to be a reason.
Lets play a future fantasy scenario here.
After drop from 1,37 euro/dollar found some strong support around lets say 1,2300, and have been consolidating for some time as market awaits Ben Bernankie to announce his policy due to poor economic data in recent months, at the same time we can see some improvement in europe(unemployment drop, GDP growth whatever), So as we close month at the 1,2300 Ben comes up with extention in program and at the same time figures from europe getting better or some bs chatter from Mario,
You then track COT if its getting balanced and if key puzzles fall in place you go long.
It is hard for me to explain but this is just another tool and if you want to use it you have to make your own way to do it.
I gave you a blueprint, the rest is observation, it doesn't happen often, maybe twice a year so if you want to build a strategy around it or at least a helping hand to spot major turn in the market you have to watch, I will not teach you how to use it as I am learning this thing myself.
Just read reports and compare this with levels on the charts and listen to central bankers.
Good luck
swing it!
