Cjack COT Index

5 saat önce

Here's the updated description with the formula and additional context:

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**Cjack COT Index - Commitment of Traders Positioning Indicator**

This indicator transforms raw Commitment of Traders (COT) data into normalized 0-100 index values, making it easy to identify extreme positioning across different trader categories.

**How It Works:**

The indicator calculates a min-max normalized index for three trader groups over your chosen lookback period (default 26 weeks):
- **Large Speculators** (Non-commercial positions) - typically trend followers
- **Small Speculators** (Non-reportable positions) - retail traders
- **Commercial Hedgers** - producers and consumers hedging business risk

The normalization formula is: **Index = (Current Position - Minimum Position) / (Maximum Position - Minimum Position) × 100**

This calculation shows where current net positioning sits between the minimum and maximum levels observed in the lookback window. A reading of 100 means current positioning equals the maximum net long over that period, 0 equals the minimum (most net short), and 50 is the midpoint of the range.

**Important:** The lookback period critically affects index readings - shorter lookbacks (13-26 weeks) make the index more sensitive to recent extremes, while longer lookbacks (52-78 weeks) provide broader historical context and identify truly exceptional positioning. Min-max normalization is essential because it makes positioning comparable across different contracts and time periods, regardless of the absolute size of positions.

**What It's Good For:**

The indicator excels at identifying **crowded trades** and potential reversals by tracking contrarian setups where commercials (smart money) position opposite to speculators. Background highlighting automatically flags:
- **Long setups** (green): Commercials heavily long while speculators are heavily short
- **Short setups** (red): Commercials heavily short while speculators are heavily long

The "Shift Index" option (enabled by default) displays last week's tradeable COT data aligned with current price action, ensuring you're working with actionable information since COT reports publish with a delay.

Works on weekly timeframes and below for commodities and futures with available COT data.

5 saat önce

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