What is a COT indicator?

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Daniel Lindsey
Answered 6 months, 3 weeks ago
<p>A COT index put simply, is a method used to quickly quantify the actions of a group of traders. In the case of the commercials, the COT index allows us to put into perspective the weekly positions of commercial traders, so that we have a consistent reference point by which to judge their actions.<br style="box-sizing: border-box; color: rgb(51, 51, 51); font-family: &quot;Noto Sans&quot;, sans-serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;" id="isPasted"><br style="box-sizing: border-box; color: rgb(51, 51, 51); font-family: &quot;Noto Sans&quot;, sans-serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;">By doing this we can determine very quickly how their&nbsp;current level of buying and selling&nbsp;compares to any previous time in the past 3 years (as is the case in a traditional COT index) or additionally over the last 18 or 6 months. By knowing this we …</p>