Original subtitles

and understand however when you when you actually spend some

was a bit of a long one but I just wanted to make everything

will actually rise and that's when we know we want to be the

time on it which I would highly recommend just go through all

seeing for example more JPY shorts less JPY longs see does

can always look at so guys that's it for this lesson it

these reports link also to your charts as well so you if you're

confusing at first because there's a lot to actually grasp

and you're going to have really clean order flow and when you

this actually translate into the market it's not going to do

extra confirmations that you need to look at might be a bit

relate this to your technicals you'll be really able to

and there's more orders you're going to see that this number

market at the time because you're getting that them orders

November time when liquidity in the market actually builds up

it's a volatility indicator however what we actually mean

number is less than eight it shows low volatility in the

because we got 5. 27 therefore we can imply that the market

reading we're getting 5. 27 now what have we just said if the

this chart onto perhaps September or October and

Therefore using this information you must understand

to be careful and reduce the risk in the market. If we push

market by volatility it says volatility volatility because

is liquidity you know how much how many orders are going

through into the market and everything like that. So

has low volatility as expected during the summer markets.

as clear as possible so guys take care and I'll see you in

here EuroFX Vics the main part that we're going to be looking

at is the chart right here in this case at the moment it's

it in. Once you get that open you've got the main area right

straight away and this is the link for it if you want to type

100% of the time however this is sort of an indicator that we

something that you could look at weekly but personally I

shows good volatility. Now where can I find this? So you

type in Barchart. com again. Obviously now now guys you can

volatility in the market. If the number is than eight it

report is more of a weekly thing. However, because the

see how useful this this website actually is and you

understand it well so yeah guys all this is is simply just some

trade? If the number is less than eight it shows low

type in the Euro FX Vix and it should come up on Google

your bias. Um so as you can tell from the open interest

volatile the markets are at the moment and is it a good time to

drastically every single week. So, Um so yeah the COT report

before you get into any of that and have these two

Now what this is is simply a chart or a number to show how

you you would usually type this contract in as a dollar EVZ.

it's only really effective on the higher time frame whether

trying to get a grip on fundamentals at the time. So as

confirmations as simply just an extra step. They will confirm

I said from the start we're going to be looking at the open

attractive to investments therefore you may see euro

would usually look at it monthly and when I'm really

institutions are doing in their open positions. Now the

it be six month, 3 month, whatever type. Um but the COT

using both the open interest and commitment of traders

buys that's when you'll start to see this open interest go

because once you once you're in this consolidation area the

So like I've said how to use these confirmations overall

So for this we use something called the Euro FX Vix. Um you

contracts are so large, you can't expect it to change

report can help long term understanding of what

then the change of the shift in trend when you start to see the

back up.

interest will drop and then eventually rise when you start

sales that have continued at this point the open interest

to see the buys happening. The reason it will drop is be is

therefore the euro contract and bonds or whatever it is is more

start to buy obviously I'm not saying that right now but this

is going to drop as well. Once you get that drop in line and

it's coming towards the end of August in 2021 and this the

at that point whether this was spurred on by fundamentals at

interest commitment of traders and also volatility indicator.

important thing here is to already have a directional bias

interest in for the euro contract is building up

you can see right there you've got the different ranges right

open interest is for the sale buyers and that's exactly what

because we're looking for sales we can only assume that that

for that is going to drop. So what does that mean? The line

interest is increasing at that time and what can we expect

therefore so you're not going to understand whether it's

the contract amount is increasing and the open

that now if you were trading during that time and you saw

is what you can expect if we start to see that happen

the monetary policies actually play out like that and you

the time in terms of interest rates in terms of other types

thing you could have done is to actually look at this open

price eventually started to sell off completely for the

buyers for example whether this is increasing interest rates

expected to see or to keep on seeing sales one of important

interest graph and see what was going on as soon as you start

to see this open interest start to spike up what does that mean

a change in fundamentals and for some reason we expect

happened now how to use this now if we start to see a change

options that you've got there. Um in this case I've looked at

research on it but for some reason the euro sold completely

there. We've chosen the six month time frames to have a

there. So how do we actually use the open interest line? So

euro. Now I can't remember exactly because I have to do my

going to show and represent is what happens at certain stages

in a graphic form right here. And the way to do that is you

as you can see right here we're on the six month time frame. As

you search and then you open up the chart through here press

type in commitment of traders and that would come up right

to all at the bottom over here we've got the COT data So

press that plus study sign. When you go onto it you just

the October 1 the November one the December that keeps on

from one of one of the videos where we briefly went over

relevant to this time you know we're at the end of August and

refreshing every single month but because this is the most

is a September 2021, then that renews you've got you've got

add is go to the study area right here add in open interest

that's going on in the economy and do not use this as the

full chart and this is where you get up what you've got to

comparing different types of economies so if if you can see

remember how we had all of this in number form. You can have it

moving on to the second part that we were looking at was

amount of interest in that market and the amount of orders

the Euro FX September 2021 contract. So if you remember

and that will come up the open interest line is that pink line

Barchart. com there's different types of contracts so this one

we'll look at so when you open up the chart so this is when

we're getting into September right now that's the one that

building up for buys or the sales so you just understand

of monetary policies clearly there's there's a reason for

simple go to because a lot it can be very misleading

Barchart. com and then at the up or down one of any of the

spreadshears on futures then you can look at the different

open interest so as I've explained it just shows the

cleaner and then of course got all the data right there now

got to always look back to your other resources and everything

longer term perspective. Now what the open interest line is

that are going through so the way you look for this is go on

how the market is moving where all the orders are going

that more JPY contracts are being sold and then for example

look at fundamental bias the other factors that we look at

you can assume that EuroJPY will be buying however you've

through and also put into perspective when you're

monetary policy or whatever this is the more important

it's just going to be this obviously shown it just a bit

thing but the COT report is a great way to actually quantify

know intra day and on the one hour time frame for example. In

terms of the second website that we use this is if you want

here you've got Euro more contracts are being bought then

report but when it comes to understanding it they see oh

in the market. Now right here we got to a certain stage where

long long period of time so it's not going to help you you

so just type that in obviously to Google or whatever it use

change in in contracts as well. And of course when you actually

sometimes because these are contracts that happen over a

okay now we've got more JPY contracts as shorts rather than

I even moved on move on to the second page but a COT report is

actually move the markets of course is going to be that

they are longing and this is what we need to as you can see

what a lot of retail traders do is they know about this COT

buyers therefore I should keep on shorting keep on shorting

keep on showing JPY however this isn't the case what

simply an extra confirmation of our of our buyers because what

terms of looking back but in terms of looking forward as

orders going through going to shorts Longs are 13. 8%. This

is exactly what we're looking for. Now know one thing before

percent of open interest you've got 48 percent of the of the

short position so that's obviously buy and sell

we're seeing that more institutions are longing no

to quickly and briefly look at it I've got the link over here

500, 000 so I believe that's the total amount of contracts

because it's all the numbers but let me just break it down.

that there are then if you look at the breakdown of it this is

positions then you've got contracts of JPY 12 million

are the businesses for example so they would buy that future

said so if you look at it you've got long shorts and then

wanting to export something and buy something or import

spreads main part again is going to be the long and the

that we're going to be looking for because that is actually

as I've explained throughout the whole thing whether it be

we'll be looking at is the short format and this is exact

market. In terms of non-commercial this is the one

current legacy reports and the part that we're going to be

the non commercial the commercial are the guys who who

confusing. Um you don't really understand what's going on

direct effect in their marketplace so if they're

contract or whatever it is as a trade but in fact this has a a

something from Japan example they would have to purchase

some JPY contracts or JPY currency and that's what the

non-reportable positions is retail trades like me and you

commercial side is the non commercial is the banks as I've

for example where our trades do not even create a blip in the

futures contracts only so not futures and options we're

type of future market that it is. Now you've got

So in this case we're going to be looking at the JPY futures

non-commercial, commercial and then total. And then

you're going to get to this part this subsection called

more institutions are shorting and selling JPY contracts than

this is what we're going to be looking at. So in this case

well you may not see a massive massive increase or decrease in

what it looks like. So of course at first it looks very

has all the different types of data but the main one that

the banks and all the larger institutions and they're called

I'll explain. That's the one that I usually use if I do look

contracts. Here it shows a date the code is relevant to the

the contracts because they're so large anyways but roughly

what's happened previously. Now of course this is good good in

so it's also it also depends on the week that's just passed as

believe comes out once a week sometime at the end of the week

coming through for the next week but it's going to be or

well so it's not that it's predicting the orders that are

looking at is the Chicago Mercantile Exchange and then

going to be looking at the short format the long format

at COT data. Um so you go onto the website the CFTC website.

JPY in the recent week so just to let you know the COT data I

Um go to the market data and economic analysis section. Then

scroll all the way down to the bottom of the page eventually

the part that we're going to be looking for so as you can see

show how many orders have gone through for the euro it will

trades at that moment

website and the second way is going to be a lot quicker that

to get it all. The official way is to go through the CFTC

asset type so again if we take the Euro example it's going to

you go on the left hand side to commitment of traders. So

So how to find all this information? There's two ways

show how many orders have gone in for sales and how many have

be a line showing how many people were actually in in

the market so if we're looking at the euro for example it will

gone in for buys then when it comes to open interest it's

simply a a line chart showing the amount of orders on an

it's a document that shows every single recorded order in

report and then you got open interest. So for commitment of

trades report also known as COT. Um it's understanding the

order sizes of types of traders and institutions into certain

it consists of two components. You've got commitment of trades

will be the final step before you actually understand your

asset classes and currency pairs. So what this report is

going to look at is the institutional orders. So that's

steps to actually enter the trade. So first things we're

bias your complete bias and of course you can make the next

it's data, some kind of GDP data, CPI, whatever it is. This

whatever reason may be, whether it's monetary policies, whether

tipe of confirmation her because we are actually

fundamental confirmations, so we would outtain now

directional buys on the stand they because about ähm you know

will year look this, some confirmations is a different

institutional oder so i you remembery now technical section

Yes guys, welcome to the next video so and this one with's

gonna be you can assome confirmations ähm an dem Bezirk

the next video