ARTICLE SYNOPSIS ...Analyze Net Positions by Jon D. Andersen Commitment of tradersÝ (COT) data has, for many traders, been difficult to understand and apply. This has largely been because access to usable forms of the data has been limited, and analysis techniques have been sparse. However, the COT does provide useful information for understanding the dynamics of the futures markets. In this article I will offer examples of analysis techniques for net positions between commercial, noncommercial (or large speculator), and small traders. Plotting the difference between the positions of these speculators provides ...
ARTICLE SYNOPSIS ...The Commitment Of Traders Report by Jon Anderson The numbers reveal plenty about market participation. There are two basic ways to analyze the futures market: technically and fundamentally. Many traders have a purely technical approach, with total disregard for the fundamentals. While that can be profitable, it can also allow you to be blindsided by the market. It pays to know the fundamentals, because they can help you anticipate which direction the market will move. But trading purely on fundamentals is also dangerous. Fundamentalists calculate a value for a specific commodity based on th...
ARTICLE SYNOPSIS ...Standard Error Bands by Jon Anderson Here's a new technique for placing trading bands around the price action of your favorite market. This technique shows how to recognize low-volatility situations and aid in forecasting trend direction. There was a time when technical analysis consisted of hand-sketched trendlines and bar charts drawn on graph paper, but today, using powerful computers, technical analysis has evolved to include advanced oscillators and sophisticated indicators. Due to software limitations, however, statistically based indicators have been difficult to apply in security an...