The Commitments of Traders (CoT) charts are based on the CoT reports which are realised by the CFTC (Commodity Futures Trading Commission) on every Friday. CoT report provides a overview of aggregate positions held by commercial traders known as the hedgers or non-commercial traders known as the large speculators or small speculators. Therefore the Commitments of Traders charts are reflecting the market sentiment between the different types of traders and helps you to see the overall picture of market and determine who is buying and who is selling. It is anticipated that that small speculators are generally wrong and that the large commercial traders are generally right about the market. CoT data is very important if you want to be on the right side of the market.
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