Hello, my friends! If this is your first time here, welcome! This week I used the time to update the COT Data Tool functions and signals, so that’s the reason the report is late. Let’s go to what matters!
BIG MOVERS
These two tables show financial instruments that had a 15% change in its non-commercial net position from one week to another, so things that are gaining momentum and should give us opportunities to trade with a direction in mind.
NZDUSD – BULLISH BIAS
This is one of the signals that I was working during the weekend and it’s for short term trades. It’s stochastic oscillator applied to non-commercials net position combined with cot index.
Rules:
Long Signal:
- Fast Stochastic greater than Slow Stochastic
- Fast Stochastic greater than 20
- Fast Stochastic crossing 20 taking place after Fast Stochastic crossing Slow Stochastic
- Commercials Cot Index greater than 90 <- Remember commercials are counter-trend traders!
Short signal:
- Fast Stochastic less than Slow Stochastic
- Fast Stochastic less than 80
- Fast Stochastic crossing 80 taking place after Fast Stochastic crossing Slow Stochastic
- Commercials Cot Index less than 5 <- Remember commercials are counter-trend traders!
It’s a little bit restrictive but a very effective signal. We also have more signals happening together:
- Open Interest near ATH
- Non-commercials net short positions near ATH
- Buy RSI Signal triggered some weeks ago
CHARTS:
NET POSITION
Here we can see short positions being closed at a fast pace, a clear indicator of profit-taking and a possible start of a new trend.
Price Charts
Here we can see a series of demand zones being created one after another and we are right now in the middle of supply and demand what makes our life pretty easy. We just have to wait for the breakout of the supply so we can enter with confidence and a cheap stop-loss.
Just to remember we saw RBNZ surprised holding the interesting rate while the markets were expecting a cut in interest rate. So the path for upside is free and there’s plenty of room for it. I am holding a bullish expectation and I will buy demands, supply breakouts, and pullbacks on previous supply zones.
NZDCAD – BULLISH BIAS
We also have a confluence of signals that give us the confidence to enter this trade, let’s see them.
Stochastic Buy Signal:
The last time this signal was triggered last in 07-11-2017 and it was very precise spotting the bottom with a little heat for us!
Price Charts:
Let’s add to last week’s report that we discussed USDCAD developing a bottom pattern.
More signals:
- COT INDEX POSSIBLE Bottom SIGNAL ->This signal has not triggered yet but it is in the eminence of it, to know more about the signal check last forex weekly report.
- RSI BUY SIGNAL
- BIG CUT IN NET SHORT POSITIONS
Price CHARTS
In this case, we can also see a series of demand zones being created one after another, this adds to our analysis giving a strong indication that a bullish trend is starting.
EURCAD – BULLISH BIAS
Pair also with a confluence of signals lets list them
- Stochastic Buy signal
- Possible Bottom Signals about to trigger
Let’s see some of them:
Let’s see whats happened last time these signals were triggered:
PRICE CHARTS and trading plan
We also can see a series of demand zones being created and also the first attempt of a breakout, this will make the breakout if it happens, more strong and we can step in with more confidence:
price charts
I think this pair, in particular, will give a lot of intraday opportunities to day trading, don’t be stubborn and trade only the long side. Do the obvious:
- Buy demands with a stop-loss below the low of the zone
- Buy pullbacks after supply zone breakout, with a stop-loss below the low of the zone
CADJPY | CADCHF | SOYBEANS – BEARISH BIAS
SUGAR – BULLISH BIAS
Remembers last week’s report about going short CADJPY and CADCHF we just got further confirmation this week with:
- RSI SELL Signals
But these signals I will discuss with members from the trading room. You are very welcome to join us! You will get:
- Trading support
- Demand/Supply/Pullback Alerts
- RSI Divergence Alerts
- Volume-Delta Divergence Alerts
- Order Execution and Management
- Signals from two profitable trading bots
- Join a managed account with no fees
That’s it my friends! I hope this can add value to you in some way. If you have any kind of doubts or questions please comment here, I am looking forward to replying to you.
“Hey Leo wait, I want to see your analysis for more pairs”
Very well my friend, join me in my chatroom.
Have a great weekend you all!
My best regards,
Leo Hermoso
