Commitment of Traders or CoT for short is a well know report published by the CFTC spanning mostly currencies, commodities and futures markets. The report, which is published on a weekly basis reports on institutional (commercials), non-commercials and retail trading (non reportable) positions for each of the assets. The CoT report has become a powerful trading tool for most traders as was made famous by Larry Williams’ book – Trading with the insiders.
Retail traders now have a chance to make use of the CoT report, which is usually published in a plain text and at times rather confusing format. The MT4 CoT indicator suite is an amazing trading indicator that displays all the relevant information in a visually understandable interface. Priced at an attractive $29.95 the CoT Indicator Suite for MT4 is a must have for traders especially dealing in Forex, Commodities and Futures. The indicator was developed by Easy Expert Forex.
What does the CoT Indicator for MT4 comprise of?
The CoT Indicator for MT4 comes with five separate indicators (in ex4 format) as mentioned below:
- CoT Index Indicator – Used to identify over bought and over sold conditions
- CoT Graph Indicator – Plots comm, non-comm. and retail (non-reportable) positions
- CoT Histogram Indicator – Used for plotting single category of positions with an in-built moving average
- CoT Totals Indicator – Displays total or net long or short positions
- CoT Open Interest Indicator – Used for plotting increase or decreases in an asset’s open position based on a category
CoT Indicator for MT4 – Installation and Usage
The CoT Indicator for MT4 is delivered via a direct download upon completion of purchase in a windows executable format. Installation is quick and simple and the trader can choose an MT4 folder where the indicators and the historical CoT data would be located. Traders can choose up to two MT4 folders and can change the location during updating of the CoT data. A license key, delivered upon successful purchase needs to be entered in order to activate the indicator.
Once the indicator is installed, you have a desktop icon which opens the CoT Update window. From this update dialog box, traders can update historical CoT data, going back to as far as the year 2000. Traders can also automatically set a time of the week where the CoT suite is automatically updated.
In regards to the instruments in the CoT report, traders can edit/delete the instruments based on their choice. For example, besides currencies, traders can also choose futures markets or commodities such as Gold and Silver.
Using the CoT Indicator Suite in MT4
After successful installation and updating of data, traders can open their MT4 trading platform and will find the 5 indicators installed under the ‘Custom Indicators Tab’. The screenshot below shows how the CoT Indicator looks likes when applied to a EURUSD Weekly Chart.
The indicators can be applied to any currency pairs and the base instrument ‘USD’ can be modified to reflect either the base or the quote currency for the currency pair you want to view.
How is the CoT Indicator Helpful?
The CoT Indicator for MT4 is primarily used for long term swing traders. Of course, intra day traders could also make use of the CoT Indicator in order to ascertain the directionality and the institutional holdings of the instrument. There are many trading strategies involved in using the CoT Indicator. A good reference point is Larry William’s book on CoT Indicator.
To understand how powerful the CoT Indicator is, refer to the weekly chart of EURUSD. Notice the highlighed area which we are looking at. The chart has the CoT Graph for EUR in a percentage mode and the EUR CoT Index.
The CoT Graph represents positions compared between Commercials (Red) and Non-Commercials (Green). Notice how easy it is to identify the price moves. The CoT Index shows an over bought level while at the same time we notice the commercials holding positions opposite to the non-commercials. Prices moved downward before pushing higher.
Is CoT Indicator for me?
If you are a trader with a focus on the bigger picture, the CoT Indicator suite is an ideal trading tool to help your trading. If the raw format of the CoT Report is something you wish to do away with, the CoT Indicator offers a great visual charting of the CoT data. For only $29.95 for a lifetime license, in terms of value for money, the CoT Indicator is a must have for traders.