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I just read the The Commitments of Traders Bible: How To Profit from Insider Market Intelligence by Stephen E. Briese.

It was great and introduced me to the C.O.T index and how to calculate it but I couldn't figure out how to calculate C.O.T movement index using the C.O.T index. Can anyone here show me how to?

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A google search provides the following

The COT Index highlights extremes in trader net positions. The rate of change of the COT Index or COT Movement Index is simply the difference between the COT Index and its reading of one or several weeks prior. The Movement Index marks three intermediate reaction highs (arrows), which initially provided excellent reselling points and subsequently became ideal levels for trailing stop losses.

Quote from Wiley Online Library

So there is a choice of how many weeks 'n' back in time you compare with. I would suggest some back testing of this with varying values of 'n', to determine if what n gives you the best reaction for your market.

  • exactly thank you very much – karim Jul 13 at 11:53
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One claim to fame of Larry Williams is the Williams %R Indicator. In reality, it's the inverse of George Lane's Stochastic Indicator so he didn't really invent anything at all with this indicator.

Larry Williams also wrote a book about the COT Report. Out of curiosity, I took a quick look and found this explanation:

https://freecotdata.com/how-to-use/

It looks like a variation of the %R Indicator, adjusted for Open Interest. Beyond that, I have no clue nor am I going to research this for you. And unfortunately, this is probably going to be the best answer your receive since it's likely to be the only answer :->)

  • hey , i did not ask about how to use the COT data , am just trying to figure out how Briese calculated the COT movement so am asking about the math formula more then technical indicator – karim Jul 10 at 14:59
  • You're welcome! – Bob Baerker Jul 10 at 16:56

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