Hello, my friends! This is the last report of the year and I hope that one more time, I can help you make money. As it’s time for gifts I prepared something special for you too if you subscribe to chatroom until 31/12/2019 you will get the same, Cot Data Tool. If you sign monthly you get monthly access, and this will remain until you cancel your subscription. You buy two subscriptions for the price of one. so don’t miss it.
BIG MOVERS
These two table shows 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.
TRIGGERED SIGNALS
GBPAUD – POSSIBLE TOP SIGNAL
This is one super interesting and one of my favorites, and looking in the “past signals” tab for GBPAUD we can see this one has a high strike rate.
TRADING PLAN
As you can see the timing is not perfect as cot is not good for timing, but is excellent for direction, that’s the reason we use the supply/demand alerts to enter in the trades. As long we hold below 1.91 we are ok to short and add more short as the trend gains strength. A move above 1.91, invalidate or trading idea and we wait for next cot release. You must wait for the zones, do not trade in the half of the way.
EURCAD – Possible Bottom Signal
I commented weeks ago about the USDCAD making a bottom formation and this is manifesting across many currencies that CAD will weaken even further. The EURCAD cut in short positions was relevant and we also so COT Index giving the “kiss of death” to CAD and signaling a bottom is in!
Trading Plan
This is really a simple plan but will require patience. We will wait to buy the 1.446 demand zone or we will buy the break of the 1.47554 supply zone, I prefer to buy the breakout. Again, don’t be the “smart guy” taking trades in the middle of the way. This is exactly what I am going to do if it does not trigger I am doing nothing.
USDCAD – BULLISH BIAS
This one I will be very active this week, I will take trades even on the 1-hour timeframe. Supply/demand/pullbacks I will take them all to the long side only. The bottom formation for USDCAD looks complete, and in the actual pace, USDCAD big specs net position will change from bearish to bullish. So we will help the trend, and data is telling us that the range that is trapping USDCAD will see an end very very soon.
TRADING PLAN
As I told before, I am going to be very active this week on USDCAD, we have cot data supporting a move higher and also fundamental data telling us that cad is dead for now.
Scenario 1:
Scenario 2:
It’s not possible to see pullback zones now, as they form while we trade, but I am in these zones too. Trading the long side only!
Well friends, I really like to thank you all for the support you gave me this year, following me on twitter, giving me ideas, buying my products, hiring my services and being good friends! Really Thank you!
Many of you become close friends and I really appreciate that I would like to say that my DM on twitter is always open, so if you need assistance or just share a nice idea send me a message!
I hope you all had a great year and my wish is the next year will be even better for all of us!
“God has helped us thus far”
My best regards!
Leo Hermoso
