Euro / U.S. Dollar forum

Happy Weekend
Today we celebrate the spirit of those who navigate risk, chase opportunities, and move markets with courage and strategy.
Behind every chart, every decision, and every trade, there’s discipline, patience, and relentless passion.
Here’s to the traders — the silent architects of the financial world.
Keep believing, keep evolving, and may every trade bring you closer to your goals!
Let's discuss the "trap signs" referred to in the analysis above, especially from the perspective of COT (Commitment of Traders) last time.
Who are "Commercials", "Retail", and "Institutional"?
1. Retail Traders (yellow):
• Small traders (like us usually).
• Often enter the market late.
• Data shows they are now very bullish on EUR (68% long).
2. Institutional / Non-Commercials (blue):
• Hedge funds, big speculators.
• They are also net long EUR, meaning they are optimistic.
3. Commercials (black):
• Large banks, multinational companies (hedging real business needs).
• They are not speculators, but they are very smart and disciplined.
• When they are net short, it is often a sign that the price will fall in the near future (because they are positioning against the euphoria).
What Does That Trap Mean?
For example:
• Now EUR/USD looks bullish.
• Retail and institutions are all “buying”.
• But it turns out that Commercials are secretly placing a lot of shorts.
• This could be a signal that this upward movement is a “false move” or bull trap, before the price reverses sharply down.
Why?
Because usually, when all retailers have joined in buying, the market lacks “new buyers” and this is the ideal moment for smart money (Commercials) to sell at a high price.
So Be Careful If:
• RSI is approaching overbought
• Price is near strong resistance
• Retail is too optimistic (COT data)
• Commercials take opposite positions