MetaCOT 2 COT Index MT4
MetaCOT 2 is a set of indicators and specialized utilities for the analysis of the U.S. Commodity Futures Trading Commission reports. Thanks to the reports issued by the Commission, it is possible to analyze the size and direction of the positions of the major market participants, which brings the long-term price prediction accuracy to a new higher-quality level, inaccessible to most traders.
These indicators, related to the fundamental analysis, can also be used as an effective long-term filter when entering a medium-term position. For this, they should be combined with a classic price analysis.
COT Index is the most popular, efficient and the simplest indicator for determining the extreme overbought and oversold points of the market. It is calculated on the basis of data on the net trader positions taken from the COT report (Commitments of Traders) by the Stochastic oscillator formula. The values of the indicator from 0% to 20% and from 80% to 100% point at the moments of the extreme overbought and oversold state market, signaling the frequent reversal of the price after reaching these levels. The calculation is based on net positions of commercial, non-commercial and non-reportable traders, as well as the open interest.
Find out more details on the usage methods of this indicator in the book by Larry Williams: Trade Stocks and Commodities with the Insiders: Secrets of the COT Report", and also in the article Meta COT Project - New Horizons for CFTC Report Analysis in MetaTrader 4.
Below are the indicator parameters and their description:
- Source of Report - COT report type. There are two types of report: 'Futures Only' and 'Futures And Options';
- Group of Traders - Group of COT report participants. Includes the groups listed above;
- Release Day - set the day to refresh the indicator. At the default value, 'Release by Friday', the indicator updates its values on Friday (day of data release). At the value 'Release by Thuesday' - on Tuesday (day of data receipt).
- DataType - select data to plot the indicator. At the default value, 'Contracts of Traders', the indicator calculates its values based on the number of contracts, at the value 'Number of Traders' - based on the number of traders.
- Subgroup of Traders - Subgroup of the participants. Divided into All, Old and Other;
- Period of COT Index - Period of COT Index calculation. Recommended values: 25, 52 and 156 weeks;
- Auto Detect Report Name - If this parameter is set to 'true', the indicator automatically downloads the report, corresponding to the market symbol it is running on. If no report corresponding to the current symbol could be identified, then the default report is downloaded, that is specified in the Report Name parameter;
- Report Name - The name of the report to download if the Auto Detect Report Name parameter is set to 'false'. The name of one of the MetaCOT database files without its extension must be specified as the report name;
- Mirror Mode - Mirror mode of the indicator. If true, the indicator maximums become minimums, and minimums become maximums.
This indicator can be combined with other indicators of the MetaCOT series, also to display several participant groups in one common subwindow of the indicator. This achieves a high degree of flexibility in conducting fundamental and technical market analysis. It is important to understand that this indicator is best used in conjunction with other indicators of the MetaCOT series, thereby producing the most accurate and comprehensive analysis of the fundamental picture of the market.
The indicator operation requires the CFTC reports to be downloaded and installed on your computer, which can be done with a special report installation utility - MetaCOT 2 Install CFTC Reports MT4.
More details on the description of the indicator settings can be found in the blog "MetaCOT 2: Settings and Possibility".
- Fixed internal array initialization. In previous versions, this sometimes caused errors hiding the indicators from a chart.
- Now, oscillators automatically scale within -10 to +110%. This helps to set up more correct view of the indicators right at the first start of the indicator since the lines do not cross the top and bottom window borders.
- Switched to classic display of the indicator levels. Now, it is possible to place them at arbitrary levels, as well as change their colors and line types.
- Added new parameter: 'Release Day'. It takes two values: 'Release by Tuesday' - new values of the indicator appear every Tuesday, and 'Release by Friday' (default value), - new values of the indicator appear ever Friday.
- Added new parameter: 'Data Type'. It allows to select the data source. At the value 'Contracts of Traders' the indicator downloads the information on the number of traders' contracts. At the value 'Number of Traders' the indicator downloads the information on the number of traders holding the corresponding position.
- Added an error message, displayed in the indicator window, if the data with the CFTC reports were not found or if 'MetaCOT CFTC Install Reports' is not installed.
- Fixed the indicator crash, which occurred when attempting to download a non-existing report.
- Now, the levels of threshold values of indicator can be modified in the "Levels" tab of the setting window.
- Fixed indicator reset error after the terminal restarts. Now the restart of the terminal runs smoothly.
- Fixed the indicator operation in the strategy tester. Now the indicator is plotted dynamically in the visualization mode.
- Improved the indicator value update system. Now, if the reports are updated via CFTC Reports, the indicator automatically downloads the new values, and there will be no need to restart the indicator.