or trading sideways, instead of why it is happening. As seen on the chart above, EUR/USD was strongly trading upwards and the RSI reading was mostly above the 70 mark. A Forex trader must understand that the Forex market is a synthesis of different views, ideas and opinions.
It is a useful way of gauging the feeling or tone of the market and then making appropriate trade decisions. The COT report in fact contains a lot of other useful information, however the essence of the report is data that shows the net long or short positions for every available futures contract for both commercial and non-commercial traders. GDP report is published at 8:30 am EST on the last day of each quarter, and it reflects the prior quarters economic activity. Besides, you can also use the COT indicator to spot market tops and bottomssince entering trades when the sentiment is extreme is usually more profitable. Although the report is not real-time, the data is still very valuable to assist forex traders who want to use it for gauging the prevailing market sentiment and taking intermediate and long-term positions. The forex markets do not simply reflect all of the information out there because traders will all just act the same way.