OPEN-SOURCE SCRIPT
Updated COT Index
Reference:
Trade Stocks and Commodities with the Insiders
Secrets of the COT Report by Larry Williams pg34
The equation is as below:
Current week's value- Lowest value of last three years
---------------------------------------------------------------------------- X 100%
Highest high of last three years-Lowest low of last three years
According to Larry Williams, traders should follow commercials direction. When the commercial index line (yellow line) is above 80, this indicates commercials are bullish. Hence, traders can look for potential buy setup. Conversely, when commercials index line (yellow line) is below 20, this indicates commercials are bearish, we can look for sell setup.
Do note that this is only applicable on Weekly chart as COT reports come out on weekly basis.
Modification from the original COT index from Larry Williams:
1) I've added 1year and 6months period, so traders maybe can look for pullback using shorter period. By default, Larry Williams uses 3 years Commercial index.
2) I've added non-commercials and retail traders index, they basically trade opposite way of commercials.
This indicator should not be used as a timing tool or entry tool, you can use it as your weekly or monthly bias tool. For more information, please read the books. Feel free to modify the code, if u have a better version of this, you may share to me if you want, I will be very grateful!
Trade Stocks and Commodities with the Insiders
Secrets of the COT Report by Larry Williams pg34
The equation is as below:
Current week's value- Lowest value of last three years
---------------------------------------------------------------------------- X 100%
Highest high of last three years-Lowest low of last three years
According to Larry Williams, traders should follow commercials direction. When the commercial index line (yellow line) is above 80, this indicates commercials are bullish. Hence, traders can look for potential buy setup. Conversely, when commercials index line (yellow line) is below 20, this indicates commercials are bearish, we can look for sell setup.
Do note that this is only applicable on Weekly chart as COT reports come out on weekly basis.
Modification from the original COT index from Larry Williams:
1) I've added 1year and 6months period, so traders maybe can look for pullback using shorter period. By default, Larry Williams uses 3 years Commercial index.
2) I've added non-commercials and retail traders index, they basically trade opposite way of commercials.
This indicator should not be used as a timing tool or entry tool, you can use it as your weekly or monthly bias tool. For more information, please read the books. Feel free to modify the code, if u have a better version of this, you may share to me if you want, I will be very grateful!
Release Notes
Now available more futures chartOpen-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.