COT-Index-NocTradingCOT Index Indicator
The COT Index Indicator is a powerful tool designed to visualize the Commitment of Traders (COT) data and offer insights into market sentiment. The COT Index is a measurement of the relative positioning of commercial traders versus non-commercial and retail traders in the futures market. It is widely used to identify potential market reversals by observing the extremes in trader positioning.
Customizable Timeframe: The indicator allows you to choose a custom time interval (in months) to visualize the COT data, making it flexible to fit different trading styles and strategies.
How to Use:
Visualize Market Sentiment: A COT Index near extremes (close to 0 or 100) can indicate potential turning points in the market, as it reflects extreme positioning of different market participant groups.
Adjust the Time Interval: The ability to adjust the time interval (in months) gives traders the flexibility to analyze the market over different periods, which can be useful in detecting longer-term trends or short-term shifts in sentiment.
Combine with Other Indicators: To enhance your analysis, combine the COT Index with your technical analysis.
This tool can serve as an invaluable addition to your trading strategy, providing a deeper understanding of the market dynamics and the positioning of major market participants.
Retail
Retail PositioningThis script tries to estimate how inclined may retail traders be to open a position based on popular indicators RSI, Stochastic, Ichimoku, Bollinger Bands, MACD, and 200 EMA. Conditions are:
Plus values
• RSI above 70
• %K above 70 or even
• Conversion line above baseline and price above the cloud
• High above the upper band
• MACD above the signal line
Each condition gives 1 point if true or 2 points if it is also above 200 EMA
Minus values
• RSI below 30
• %K below 30 or even
• Conversion line below baseline and price below the cloud
• Low below the upper band
• MACD below the signal line
Each condition gives -1 point if true or -2 points if it is also below 200 EMA
I still consider the script as in development, so if you have some ideas on how it could be improved or traded, let me know.
