COT oscillator

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  • #65617
    Michael
    • Topics: 2
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    Hi, I am having trouble with the COT oscillator. It says here  
    that 
    in the report, each line is the net number of Long Contracts – Short Contracts.
    So if a group was bullish, we would see a net long (or positive) value.

    Below you can see in green the speculators and in red the commercials  (I have taken out the small speculators for clarity)
    To me it looks like anything below the 50 mark in the oscillator represents a negative value (net short) and the closer to zero, the closer to the largest net short in the past 52 weeks

    I hope I’m reading this correctly

    sugar

    #65627
    Darren
    • Topics: 66
    • Replies: 666
    • Posts: 732

    Thanks Michael – the COT Oscillator is a stochastic, measuring the ratio of the current net commercial positions to the 52 week high/low range. So with the oscillator value at 6, the current value of -351 in the COT Report is near the bottom of the yearly range. Compare this to the Large Speculators in green with the oscillator at 91 – ie 297 is close to the highest net position value over the last year.

    Hope that helps.

    #65639
    Michael
    • Topics: 2
    • Replies: 2
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    It does help. Thanks Darren (by the way, that is a photo of my dad. Don’t know how it came up here. It must be that we could be sharing a wordpress email …)

    #65667
    Darren
    • Topics: 66
    • Replies: 666
    • Posts: 732

    No worries Michael. Yes you must be sharing a WordPress / Gravatar email address!

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