COT Index is the most popular, efficient and simple indicator for identifying extreme market overbying and overselling points. It is calculated on the basis of the trader net position data, taken from the Commitment Of Traders (COT) reports, using the Stochastic oscillator formula. The indicator values from 0% to 20% and from 80% to 100% point to the moments of the market extreme overbuying or overselling, sending a signal about a frequent price reversal after reaching these levels. Net positions of commercial, non-commercial and non-reported traders, as well as the Open Interest, are used as a basis for calculations.
This is how the indicator looks like in the chart:
The indicator has the following parameters:
Period - Setting of the indicator calculation period.
Mode - Setting of the required position group calculation.
- Commercial - Positions of funds and managers.
- Non-Commercial - Positions of private persons.
- Non-Reported - Positions, which are not taken into account in reports.
Panel - Selection of the indicator location in the chart:
- New panel.
Show value/Show the current value - It displays the indicator value to the left on the price scale.
Scale/Auto-scaling - If this option is ON, the scale will be automatically calculated based on the indicator minimum and maximum values, so that the indicator would fit in in the chart.
Color - The indicator color setting.
Visual type - Visual setting of the indicator display in the chart:
- Up arrow
- Down arrow
- Axis label
Line style - Setting of the line display type:
- Dash - dot
- Dash - dot - dot
Width/Thickness - Setting of the indicator line thickness.
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