MetaCOT 2 Movement Index DCOT MT4
MetaCOT 2 is a set of indicators and specialized utilities, that allows to analyze the CFTC (U.S. Commodity futures trading commission) reports right in the MetaTrader terminal. This indicator analyzes the Disaggregated Commitments of Traders (D-COT) reports and is analogous to the classic Movement Index<, calculated for the COT reports.
Movement Index was first proposed by Steve Breeze and described in his book "The Commitments of Traders Bible: How To Profit from Insider Market Intelligence". It quickly gained popularity among the traders who analyze the CFTC reports, and became a classic and a unique tool in many aspects, which can be used for finding rapid changes, leading to an imbalance of positions between the market participants. The indicator is best suited to swing trading.
The indicator displays the change in the relative position of the participants as a histogram, expressed as a percentage. It ranges from -100% to + 100% and is calculated based on the data of the D-COT Index or Willco Index indicator. The reverse signals appear when the absolute values of the indicator exceed the threshold, set to 40% by default.
While other indicators of the MetaCOT series are trend indicators, the Movement Index is a momentum indicator, i.e. it displays the rapid change in the positions of the market participants. Thus, the indicator becomes indispensable for analysis in conjunction with other indicators of the MetaCOT series. In addition, the Movement Index is not available on other programs which provide access to the CFTC reports.
Find out more details on the calculation method of this indicator in the article: Meta COT Project - New Horizons for CFTC Report Analysis in MetaTrader 4.
Below are the main indicator parameters and their description:
- Source of Report - D-COT report type. There are two types of report: Futures Only and Futures And Options;
- Group of Traders - group of D-COT report participants;
- Period - period to calculate the COT or Willco index. Recommended values: 26, 52 and 156 weeks;
- Movement Period - Period between two points of the index. The default is 6 weeks;
- Movement Type - Type of index calculation. The indicator can be calculated based on the classic D-COT index, as well as the Willco;
- Critical Value - Critical value, when exceeded, the indicator generates alerts about the probable change in the trend.
This indicator is designed for analyzing commodity markets (metals, oil and gas, food, raw materials). Use the TFF series indicators for analyzing the financial markets (currencies, indices, bonds), particularly the Movement Index TFF.
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".