READ FOR ADXR
AND DOWNLOAD
FROM INFOREX TRADING LINKS ONLY!
ΠΑΝΤΑ ΚΟΝΤΑ ΣΤΟΝ ΕΠΕΝΔΥΤΗ!
ΚΑΙ ΦΥΣΙΚΑ ΔΕΙΤΕ ΑΝ ΤΟ (LOOK IF) TRADING ROOM IS ON LINE RIGHT UP!
Tuesday, 21 January 2014
Monday, 20 January 2014
NZDUSD H4
WE GO A SCALPING MOVE WITH H4LONG BUT WE REVERSE THE POSITION TO SHORT AT POINT 2!
check box right up for trading room-look the mesage ON or off line!
ανα πασα στιγμη δειτε αν το trading room ειναι on line (επανω δεξια)
Sunday, 19 January 2014
The Commitments of Traders (COT) report
Background: The Commitments of Traders (COT) report was first published in 1962 and is now released weekly by the Commodity Futures Trading Commission on Friday afternoons, reflecting positions held by various categories of traders as of the previous Tuesday (unless it is a holiday week). The report has been expanded and modified over the years as trading activity has evolved.
The COT reports break down the open interest for U.S. markets in which 20 or more traders hold long or short positions equal to or above the reporting levels established by the CFTC. These larger traders are required to report how many long contracts and how many short contracts they are holding and fall into one of several categories:
- Producer/Merchant/Processor/User - generally companies involved in the commercial business of that market who typically use the market to hedge.
- Swap dealers - other large traders including commodity investment traders (CITs sometimes described as "the funds") whose position size requires them to report.
- Managed money - also sometimes described as the funds or large speculative traders.
- Other reportables - smaller individual traders and hedgers whose positions are large enough to require a report.
The COT report is available at www.cftc.gov each week.
Purpose: Volume and open interest statistics
provide factual information about the level of activity and the interest in a market at various price levels, but they don't reveal who is responsible for producing that activity. The COT report identifies the portion of the open interest being held by traders in each of the categories and gives traders an idea about the participants and the extent of their involvement in U.S. markets. The report does not indicate the size of positions held by individual companies or traders.
provide factual information about the level of activity and the interest in a market at various price levels, but they don't reveal who is responsible for producing that activity. The COT report identifies the portion of the open interest being held by traders in each of the categories and gives traders an idea about the participants and the extent of their involvement in U.S. markets. The report does not indicate the size of positions held by individual companies or traders.
Basic signals: The primary value of the COT report is showing what the "smart money" is doing in a market - that is, the commercials and companies who are engaged in a market and should be the best informed about developments in that market and what might be expected for future prices based on their own business activities.
These merchants/users/commercials are the "elephants" or "big money" in the market, and the COT report reveals their tracks. In general, traders usually like to be on the same side of the market as the smart money and can use the COT report to gain this insight.
Pros/cons: This public report provides some transparency into a marketplace for all to see. It gives individual traders information about large market participants and how they view a market. The absolute numbers indicate shifts in their positions and opinions from week to week.
However, there is no guarantee that commercials are always correct, and if they are forced to capitulate, it can produce volatile price reactions. The key to the COT report is interpreting the data because a large commercial number in one market may not mean the same as in another market. It takes time and experience to get the most out of these reports.
example of chart
Volatility Index (VIX) Indicator
Background: The idea for an index to measure the volatility of the stock market was conceived in the late 1980s and was introduced by the Chicago Board Options Exchange (CBOE) in early 1993. The index was originally based on the S&P 100 Index option prices (OEX) traded at the CBOE, but the underlying index was changed to the CBOE S&P 500 Index (SPX) in 2003.
Computed on a real-time basis, the VIX is quoted in percentage points and indicates what the market expects the movement in the S&P 500 Index (SPX) will be in the next 30 days.
Although most technical indicators can be applied to a range of markets and are not a trading instrument themselves, the VIX is just an indicator of S&P 500 Index volatility and is also the basis for a futures contract, started in 2004, an options contract, started in 2006, and exchange-traded funds.
Purpose: The VIX is often referred to as the "fear index" because it reflects
the trading crowd's opinion of stock market price movement. High VIX readings indicating expectations for greater volatility - that is, wilder and sharper market swings - are typically associated with falling stock market prices but could also be the result of sharp increases in stock prices.
the trading crowd's opinion of stock market price movement. High VIX readings indicating expectations for greater volatility - that is, wilder and sharper market swings - are typically associated with falling stock market prices but could also be the result of sharp increases in stock prices.
VIX has become the best-known gauge of investor sentiment for stock market investors and, as such, could also be included in the sentiment category of indications. VIX provides a key reading for options traders.
Basic signals: A rising VIX reading suggests greater volatility and uncertainty in the stock market. The could also produce a decline in such markets as oil due to expectations for slower economic growth and increases in the price of markets such as gold or T-notes as value havens.
An average or "normal" VIX reading, if there is such a thing, is around 18-20. If VIX drops below that level, it indicates traders are complacent and traders should buy options because premiums are lower. If VIX spikes to 30 or higher, it indicates traders are fearful and uncertain and suggests traders should be sellers of options as premiums are higher.
VIX reached a high of nearly 90 during the steep stock market setback in the fall of 2008 but has also been as low as 10 (see chart below).
Pros/cons: VIX does not measure price but what the market thinks will happen to SPX prices in the near future. It is a good tool for options traders to determine whether they should be buyers or sellers, but it can also be a very short-lived reading of investor sentiment at the moment. Spikes from low levels and collapses from high levels can be devastating for those who trade the VIX instruments.
VIX SPX500
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