All language subtitles for Lesson 1 - Commitment Of Traders - How I Use The Data EN

When we talk about the commodity
markets is very important that you

read just disclaimers everything that's
being discussed in this segment of our

discussion on commodities, any trade.

Discussion or idea or concept
should be viewed in the light of a

paper trade, not an actual trade.

I'm not a CTA, so I'm not licensed to
get trade advice about commodities,

but I'm sharing ideas on how I've
looked at the commodity market over

the last 20 plus years and where I've
seen consistency, finding directional

bias and support resistance ideas.

Okay.

All right.

So we are in the first of the
June, 2017 content ICT mentorship.

Uh, it says ICT commodity trading
lesson, one commitment of traders.

How I use the.

Okay.

And the first thing we're gonna
be looking at is the raw data.

Now, when we look at the commitment
of traders report, uh, what is that?

Well, the all data comes by way of a
weekly report released by the CFTC.

And you can find this on www dot CFTC gov.

And what you want to look for is you
want to be looking at the futures

contract only in the short format.

And if you do this under the CME,
which is the Chicago Marketo.

Uh, we can find the currencies
that trade as calm dolls.

And one of the calm
dolls are Japanese yen.

And this is the most recent short
format commitment of traders

report for the Japanese yen.

As you see here, this is just for
the Japanese yen futures contract.

Now the CFTC website gives you
the opportunity to pull up the.

Positions as well.

I'm not concerning myself with that.

I never concerned myself with that at all.

I look at only the futures positions
and you want to be looking in the center

column here, where it says commercial.

And when you see that commercial
area, it's going to give you a little

column that says long to the left
and in short to the right directly,

underneath that long column, you'll
see that there is 143,450 contracts.

That's the commercial long position.

And then to the right of that
underneath the short column,

it's 76,426 contract short.

The way we get the net position
is we subtract the two to get to.

And if it's a positive
number, it's net long.

If it's a negative number it's net short.

In this case, we have 67,024 contracts
long that by the difference between the

long positions and the short positions.

So there's, uh, a net long
position of 67,024 contracts long.

Now, basically this tells us nothing
about their current hedging program.

So what we had to do is have to look
deeper and go behind the numbers and

see what it is they've been doing.

Okay.

Net tres position line chart.

And with this chart, we can track
the three main classes of traders.

And again, you would find
this on www.bar chart.com.

You see me use it many times in the.

And what you're gonna be doing is
going to be plotting a daily chart.

And you'll be including in the indicator
portion on the bottom of the chart,

you're going to be adding the net
traders physician line chart and the

duration you want to be displaying as at
least one year's worth of price action.

And the commercial traders are typically
on bar trot.com shown as the red line

at the bottom of the chart, the large
traders are shown as in a green.

And the small speculators are
always shown in as a blue line.

But when we look at this price
action against the net traded

position line chart, I want
you to visually see the hedging

programs by the commercial traders.

Now, when I first got into trading,
obviously my mentor was Larry

Williams, much like everyone else
that's ever come across as material.

He's like the godfather.

If you will, of the cot.

So everything he mentioned in his 1970
book, how I made a million dollars

trading commodities last year using the
commercial information that was like

light years ahead of everything else.

Naturally, everyone flocked to,
to just looking at whether the

commercials are net long or.

Much like everyone else.

I found out by trial and
error that it isn't that easy.

You got to go in there
and do some more research.

Uh, I thought clearly by looking at
the commercials, uh, if, if they were

buying to therefore, I had to be a
buyer too, but because their nature of

what they are as a, as a participant
in the marketplace, they are usual.

Large corporate producers or users
of commodities and commodities.

Like a calm dial is the same thing.

Uh, currencies are a commodity they're
they're they're bought and sold.

They're provided for, in terms of
allowing global commerce, um, you

know, providing loans, uh, making
transactions all over the world.

And because there's a difference
of all these countries around

the world, there's going to be.

Change from one currency to the
other to do business or make

transactions in another country.

So just like we would look at, for
instance, like Coco for Hershey, where

they make a large, um, uh, production of
chocolate every day, their number one.

Ingredient is sugar and cocoa.

So if we follow those
commodities, you naturally cook.

Coco is going to have a lot of
fundamental supply and demand

factors that go along with it.

And Hershey is going to have
a trained, accredited staff to

track all those things that.

You keep a closer eye on whether the
price is really cheap or expensive.

And if they think it's gonna be
expensive in the near future, they're

gonna be much more aggressive about
buying it because they want to lock

in lower prices because they know at
a later time, prices will go higher.

The same thing occurs with currencies.

So if we look at the net chairs position
line chart, it gives us a graphic

depiction of the overall net basis.

In other words, are they above the
zero line or below this airline?

By itself.

It doesn't mean anything.

But when we look at the information a
little bit closer in a different light,

you'll have a lot better understanding
about what they're doing as a hedger.

So that brings us to
the commercial hedging.

So naturally, if we pull up a bar
chart.com chart of the Japanese

yen, and you put the net traders
in line chart, one, the chart

itself with about one year's worth
of data, this is what you get.

So.

By itself again, it
means absolutely nothing.

You can see between today's present date
of June 5th, 2017, and December of 2016.

The commercials, the red line
at the bottom of the chart shows

that red line above the zero line,
that zero line delineates, whether

we're net long or net short.

So if that red line is above the zero line
from December, 2016, to present time June,

2017, that means that the commercials
have been net long for over six months.

So what does that mean?

You buy all only just buy doesn't
mean you just buy there's other things

you have to look at, but by itself it
means that they are in a buy program.

Okay.

So there's a buy program and
then it's hedging programs.

The buy program is a.

Macro perspective or macro program where
they focus the bulk of their buying.

And while they'll hedge and sell
some, there'll be hedging in prices

by selling the shorter-term by program

can be seen by looking at
the 12 to six month duration.

So in other words, we look back a year
to see what they've done, the highest.

Net long position and the lowest net
long position they've had and the

lowest net short position and the
highest net short position they've had.

So we break the market
down in two categories.

What was their action above
that zero line as a whole?

What was the highest reading and the
lowest reading while above the zero line.

And what was the highest reading
and the lowest reading below the.

So there's a buy program when
they're above the zero line and a

cell program when they're below it.

But there's also hedging that goes
on commercial hedging programs

that we need to be aware of.

And you can check them by using
this information, but you have

to look at it differently.

You can't look at it like this
because this is what retail sees.

Obviously retail, isn't going to
have the true perspective on what

price is doing from a commercial
or institutional perspective.

So what I have to do is change your
perspective on how we look at it.

So let's take a look at it closely.

So, okay.

When we're focusing on here
is the bottom of the chart.

These three lines here again,
they represent the green line is

the large speculators, big, large
funds or big private traders that

have a lot of, uh, position size.

Small speculators is the blue line.

That's usually the, uh, the public.

They have no idea what's going on and in.

Commercials or large speculators, uh,
in terms of like a commercial user or

producer of a commodity in this case,
if it's a bank or lending institution,

uh, they would be in that red line.

So that red line is really what
we're going to be tracking.

We're only interested in that line.

We don't care what the green line
is because it's always going to

be diametrically opposed to the
actions or positions of that, the

red line and the blue line we could
care less about because that's the

new street money, less informed.

So, what I've done here
is I've removed okay.

By way of paint and you can do this if
you want to, but it's not necessary once

you understand the procedure or process
that you go through by looking at price,

you won't need to do this over time.

You're just your, I will be trained
to be able to look at this and

be able to see it on its own.

And you'll know, just by looking
at a standard traditional

chart, it'll jump off the.

Quick first glance.

You'll see exactly what's going on without
having to do all of this acrobatics.

I'm going to show you with
removing the lines with paint.

It's not necessary, but I'll say
this before we go into it for those

individuals that really want to have
this data and be able to use it like

this and see it graphically, uh, you
can start collecting the data and you

can download a historical data for all
the commodities that you want to track.

And for those individuals that
are in here to only interest in.

The currency markets, if you
like your favorite pairs, just

download, uh, historical data
about the net traders destination.

Um, for that particular currency
unions, Princeton states, deputy Jan,

you want to be a specialist in, you
can download years worth of data on

cot data and plot the commercial's net
long positions and net short positions.

And it would look like this.

He could plot it with Xcel or something.

And I'm certain, some of you guys that
are really, uh, you know, cracker Jack

with, uh, programming for empty for, you
could probably create an indicator that

does this, you know, where it plots the
net traders position for the commercials.

Only that way you can get a range
and determine what the highest

high and the lowest low is.

And last six months in the last 12
months, and be able to get that range

to define that, like we're going
to discuss here, but without having

to do all that, it's not necessary.

But if you want to do it,
there's things like that.

But what I do is I quickly look
at the chart and I see it as

I'm going to outline it here.

So obviously we have about a year's
worth of data here, and you can

see the red line is the commercial
activity and rate in December, right

before, actually December, right?

Like the last week of November,
you can see these swung from net

short position below the zero
basis line to net long in the last

week or so of, uh, November, 2016.

And they've remained.

Above the zero line from that point on.

So again by itself, it
doesn't tell us anything.

And this is the reason why
people walk away from cot data.

They say it's useless.

Um, it's always hindsight.

It can't be used.

And, you know, in terms of being able to
have prognostication about what price is

going to do, and we're going to dispel
that disbelief in this teaching here.

So what we're gonna do is we're
going to focus on when the

market's below the zero line.

Okay.

So zero line basis below zero is when
the net position is bearish or short.

The position above the zero line.

Okay.

Or the net zero sum basis
is going to be bullish.

Okay.

Are there net long when we have
those conditions, there's going to

be things that we can do to look
for optimal, optimal trade entries.

Okay.

Not optimal trade entry pattern, but
for optimal trade conditions for.

So we're going to look at this
price action segment here, and I

want you to follow along with me.

Okay.

And we're going to look in
this whole portion of price.

Actually, I'm a lot closer and
use this information, just like

we see it here on this chart.

We're going to change it slightly in
terms of the perspective, but we, we,

we're not manipulating the data at all.

We're just really zooming in and looking
at it from a hedging perspective.

Cause there's a hedging program
that I want you to see in price

action that you can track with this.

Some zero line and whether the
commercials are net long or net short

and the activity of their net positions.

Okay.

So this is January, 2016,
all the way to January, 2017.

Okay.

And what we're going to do
is run, take this entire.

Price action.

And we're gonna divide it in two segments.

We're going to do the first
portion up to January of 2017.

We're going to start around, um, well,
beginning of the year, 2016, I'm going

to break that down, but before we get
into it, I want you to look at what price

was doing the whole first half of 2016.

If you were looking at that, and
obviously we have the benefit of

hindsight here, but for the sake of
argument, Looking at institutional order

flow were the bullish or blocks being
respected and we're up close candles

or what would be deemed as a bare
sort of block where they being broken.

In other words, are we seeing price being
supported by discount arrays, clearly

beyond a shadow of a doubt it's there.

So we know the institutional order
flow was bullish from January of 2016.

We're February, 2016, when price me
that low and all the way through.

Until around the mid July, going
into the summer months, uh, there

was a small little pullback that,
uh, broke a short-term low and

then price resumed higher again.

And it had a lot of issues with getting
above the 1.00 level when the Japanese

yen, which we'll look at at the end
of this teaching, why it struggled

with that level and finally reversed.

But.

We can see how institutional
order flow was bullish.

Uh, every time a short-term loan was taken
out, price rallied, any time of price,

trade down into it, down closed candle.

It was supported as a bull shoulder
block and all of the premium PD

arrays were always broken through.

There was no premium
effect that was lasting.

But if we look at just the cot data
down here, the commercials, the red

line that was below the zero line.

So that would be telling us to do
what go short based on the traditional

perspective of commitment of traders.

And this is why.

Everyone discounted Larry
Williams stuff for a long, long

time and still do to today.

And if you look at how I'm going
to show you how to use this

information, it takes cot data to
light years ahead where everyone

else doesn't even see it like this.

They don't even turn, they
don't interpret price like this.

They don't interpret cot data like
this, but this is exactly how you

track what their hedging programs are.

So while they had a cell program,
Because they are below the zero line or

the zero line basis was barest because
they were below zero line from January

to February, 2016, all the way to the
last or middle week of November, 2016,

you can see that graphically with
the red line going above the zero.

So while they have a bearish or sell
program going on at the time for many

months, they were selling Heather.

Okay.

As the market was rallying, they
were keeping sell program active,

but you can still see institutional
order flow being bullshit.

And this is what's going
to confuse some of you.

Okay.

We're going to cover the details later
in this teaching, but for now, what

you're focusing on primarily is was the
institutional order flow telling you, it's

going to tell you whether there's buying
or selling going on by price action alone.

What we're going to do is decipher
that from a cot standpoint.

Okay.

That filter process, even though
that the cot data is below

the zero line for many months.

Okay.

We can still fair it out when the
commercials step in and do aggressive

hedging and buying, even though they're
in a below zero line or a cell program,

you can see when they get aggressive and.

And cause price to go higher while still
keeping the cot data below the zero line.

So anyone tracking the commitment
of traders report for the Japanese

yen, they're not following along.

In other words, it doesn't
look germane to them.

It's completely alien.

It doesn't make any sense to the
Japanese runs rallying, rallying,

rallying, but they're holding a net
short position by the commercials.

How can that be?

What, why is that happening?

Well, the commercial.

Again, they could be banks, they
could be selling a currency, providing

liquidity, all that's being reflected
in these numbers as a net basis.

So just because they're below the
zero line, doesn't mean that we can't

see buying itself as well, because
it can happen on both sides of the

marketplace, but anything above the
zero line, that's obviously bullish.

And we would have to consider anything
below the zero line bearish, but

we do not limit ourselves to just
focusing on selling only below the zero

line or buying above the zero line.

Cause you can do both the way
you decipher it is what is

institutional order flow at the time?

What are the conditions right
now suggesting and price action.

If bulls shorter blocks are being
a supporting price, any loads,

the Derby and taking out reject
price as a stop run on sell.

Stop.

And then all of a sudden it
rallies and breaks through will be

otherwise deemed as a premium array.

Then institutional order flow is, is
bullish and you can see by programs,

kick in, in a hedging program while
a larger cell program is underway.

And again, let me rephrase that.

A larger long-term cell program can still
have bullish hedging by programs in it.

And you'll see that now as we go through.

This segment of price
action for the Japanese yen.

Okay.

So what I have here is I have priced
trained in on that segment of price

and I removed the large speculators
line and the small speculators line.

So that way we can highlight all of
the price action by way of the net

chairs position line chart on the
commercials, which is the red line here.

Now I want you to see how price state.

Higher going higher, making higher
highs and, and finding support at bullet

shorter blocks, running out short-term
lows and then rallying, but finding their

way through any high or premium array.

So the institutional order flow
all the way through to the middle

of August, going into September.

But how do we reconcile this net
short position by the commercials?

Because they're below the zero line.

It doesn't make any sense unless we break
it down and use the six month range and

the 12 month range idea of looking for
the highest and the lowest reading on

their net position by the commercials,
we don't care about what those long-term.

Uh, speculators that,
uh, are in a blue line.

We don't care about the small specks.

We don't care about the large specs.

We're only caring about what the actions
of this red line is because it's going

to show us and reflect what their
hedging program is at the current time.

So anytime when you're looking at
cot data, you want to look at where

we're at right now and go back 60.

Because there's your six
month hedging program.

They have a 12 months housing program.

So by blending, the two, you can get
short-term quarterly effect trades.

Now thank you.

We talked about that.

There's quarterly effects
every three or four months.

There's a shift in market structure
in the market trades in a sustained

move for about two and a half
months or so maybe three months.

But every quarter or so of the year,
there's a shift in market structuring.

And this helps you find that by
looking at the six month range of

the highest high and lowest low of
the commercial net position has been,

that is seen with this shaded area.

She can see the highest high and
the lowest low is being basically

blocked out with that shaded area.

So once you know what
that is, you divide that.

You get that range so we can go back 12
months and in six months and it rolls.

But in here you can see how the
net positions have stayed in a very

tight range, even that can tell us
a goldmine worth of information.

Look what suddenly happens when
you decipher the information like.

You do not see cot data like this.

And Larry Williams doesn't
even do this with cot data.

This is something that I looked at
price forever, and I knew there was

something going on behind the scenes.

And I literally said, you know, what,
if price can trade and trading right.

So can this information, but if
they're going to be doing buying

and selling, it can't be hidden.

If that's true, I should see it.

If I look at the data in terms of the
range for time, remember IPTA well, I

applied similar things to this, so I
looked at six month intervals and 12

month intervals, three month intervals.

For four months, sorry,
four year intervals.

Three-year intervals, two-year
intervals, one-year interval

and in six month intervals.

So if you go back through the data
and you'd look at it like that,

you'll get a clearer depiction of what
the commercials are actually doing.

Now, if you look at these green
little nodules in here, okay.

Even though that were below the zero
line by determining the total range in

the last six months and the last 12.

We can get every time their hedging
program kicks in, even though there's

a larger cell program is underway by
keeping the net positions below zero,

their hedging program can be deciphered
by looking at these little nodules.

Once you determine the range,
the first one here, you can see

how all that bind took place.

The second one here, you see where
they made a low they're bought off

of a bullish or block that was seen
in the last week of April filling in.

And we had this area here where they
were buying again, after we've taken

out a short-term low that was seen in
the last week of June and price resumed,

but then found long-term resistance at
that 1.00 level, which we'll look at

the last slide of this presentation.

And you'll see why clearly that had a
struggling point there and were finally

reversed by breaking a short-term low
only after trading at that 1.0 level, a

few times, failing to get above it and
finally breaking market structure to.

Downside.

And then you can see the commercials
finally started building up a larger

net, long position above the airline.

So there's the airline
basis is now bullish.

So now they're in a buy program, but
they're going to be hedging early.

They start doing it early, but
they make the highs and the

lows and the markets by doing.

So now we're looking at the last
week or so of November of 2016,

all the way to present time.

And again, I'm going to counsel you to
look at what the cot data looks like by

plotting a net traded physician, a line
chart as everyone else would do with

it, with the information that you would
get with a commitment trades reports.

This is what it looked like.

If you zoomed in on a daily chart.

And again, it doesn't tell
you much except for it.

Doesn't it.

And granted they have been sending the
Japanese yen higher as a result of that.

But what was institutional
order flow as well?

Our down candle supporting price.

When it trades back down to it are
up-close candles being broken as PDA.

Rays are old highs being taken out.

And are we seeing support by
price moving down into what would

be otherwise a discount rate?

Yes.

We're seeing that all throughout
this entire price segment

from the mid point of January.

I'm sorry, the midpoint of December
going into January, where we made that

turning point now commercials have
really moved to a net long position.

Now they're in a buy program, but
now because we're in a buy program,

does that mean it can't sell off?

Now they can have selloffs, but we're
going to focus primarily on what

is the range the last six months.

Okay.

Of the commercial activity.

But first we got to focus
on what that looks like.

We're going to take everything
down to just the commercial line.

And I removed the small specs line and the
large speculators did not manipulate the

price or do anything with the indicator.

All I did was erase everything
with paint so that we can

clearly see what's going on.

I want you to look at, by taking
the information, determined that the

highest high and the lowest low in
the range, the finding that basis

line creating its own new basis line.

We can see where the buying kicks
in and you see nodules kicking in.

In January, we can see one
in mid-March and we can see

one in the last week of may.

And those are the respective time
periods where the market sees

the greatest advances in price
going higher all through here.

Market was bullish all through here.

We're currently bullish as well.

If you look at the price of Japanese yen
right now and go to the left in the last

week of April this year, you can see
there's a fair value gap up there at 91.

So it kind of gives you an insight
about where we think based on what we're

talking about here, where a Japanese gym
might go, at least on the short term,

and we're using the hedging program
as outlined here as a basis for that.

So when we look at commercial
hedging, we're not looking just at

whether a net loss, net short, but
that does give us the buyer sole

program that they're operating in.

But inside that buy and sell.

Or buy and sell program.

I say it like that.

There are hedging programs that go on
because their nature of their speculation

in the marketplace is to lock in good
prices for their manufacturing of

commodity or a good, and to do that
efficiently, they have to make sure

prices are obtained at very discount or.

Friendly levels.

You know, you don't want to be buying.

If you're Kirsha, you don't need
to be buying cocoa later on.

When you've already seen fundamentals
are suggesting is going to be higher

six months from now or a year from now.

You're not going to be
doing all your buying.

Then you're going to
allocate a lot more money.

To buy ups, uh, stock for that.

So that way, when prices go higher,
you've made a better return on your

investment and keeps costs low.

And that's the nature of, of hedging.

So the same thing happens with the
banks and lending institutions.

You know, the value of, of money is
going to be fluctuating all the time.

So they're trained accredited staffs
that do those types of things.

They will invest in buy and sell based on.

Notions that they're supplying
to manufacturers that they

have an assessment on.

I'm not smart enough
to know what they are.

I've never claimed to know that.

And you're never going
to know that from me.

Cause I don't know it personally, but I
can see what they're doing graphically

and they can't hide it from me.

And now, because I've shared it
with you, you can do the same thing.

There's nothing that they
can, they can't hide from you.

This there's nothing to worry about.

They're not gonna be able to hide in the
future because you now know how to do it.

It's just the data.

Well, Larry Williams back in the
seventies and sixties, you know, he had

it figured out then, but only at extremes.

And that's what I'm going
to say in closing here.

When we look at the commitment of
traders report and we plot it on

a, uh, traders, uh, basis, whether
it's a net long, a net short on the

commercials, if we get to a four year
extreme or a two year extreme or 12

month extreme, generally there's usually
a long-term trend reversal at play.

And the commercial will sometimes
factor that in with their own.

Uh, movements in the marketplace by
having those extremes, we will discount

any short-term hedging program.

If we get to a four year, two year or
a one-year extreme of the highest high

and the lowest low their net positions.

But let's look at this segment here
again, a little bit closer where the

commercials were below the zero line.

And this section over here where
they're above is your aligned.

When we see those conditions, okay.

The red line, that's a cell program, the
red shaded area, when it's like that below

the zero line, that is a cell program.

Doesn't mean you can't see buying going
on, but you have to look at in the form

of the hedging program that goes on,
look for the small, short term ranges.

And when they go above the new range
that you would define, as we just

mentioned an outline a moment ago, you
can see where they're buying and selling

is taking place below the zero line.

The best conditions.

Looking for shorts.

That means if you can get institutional
order flow bearish, you want to look

for net short positions about the
commercials and at premium erase.

And that would be the ideal scenario,
but you can still get by hedging programs

inside that long-term sole program.

And I know this is going to convince,
uh, confused some of you, but you're

gonna have to watch this video several
different times because you're going

to see by looking at it multiple times.

You'll see that there's two factors
taking place here, longterm buy and

sell programs based on the zero line,
whether they're above or below it.

And then they hedge even during those
periods, because they're not just buying

all one-time selling all at one time,
they're moving back and forth in the

marketplace around specific price levels.

When they create these nodules and
the hedging program, those levels

are significant in the future.

They're going to be key
price points as a PD.

Make sure you have that in your charts
and note them by using a cot edging

program technique that I just taught
you here in the green shaded area.

That is ideally going to be seeing
the best buys when the market

is creating discount rates and
institutional or flows bullish.

But it doesn't mean you can't be
selling short when the short-term six

month or 12 month range indicates that
the commercials are net short and.

Adjusted range.

As in other words, we looked at the
last, highest high and lowest low

in the last six months at 12 months.

Even if they're above the zero line
while that's a bullish by program

long-term they could still be doing
short term selling hedging programs in

there, and it causes price to go lower.

But you have to look at things in terms
of blending, three different things.

You're looking at the program of buying.

Whether they're above or below the
airline, then you look at the hedging

program based on the range of the highest
high and lowest low of the commercials in

the last six months and last 12 months,
and then using institutional order flow.

What is price telling you?

Is it respecting discounted
rates or premium arrays?

And by blending those things,
you can get to the truth of what

the market's actually doing.

And you'll know what institutional
order flow is with the greatest of.

So commercial heading hedging programs.

You know, if commercials are above or
below the net sum, zero aligned, both

sides of the market can be trading.

The current range of the commercials
net position is referred.

If institutional order flow is bullish,
we're going to be blending discount, PDA

rays, and the last 12 or six month net,
long commercial readings for long trades.

Now, again, that's when we
see those little bullish

nodules in new defined range.

Again, this can be ideally
seeing when we're above the zero.

If institutional order flow is
bearish, we're going to be blending

premium PD arrays and the 12 or
six month range of the net short

commercial readings for short trades.

The best conditions are seen when both
net some basis agree with institutional

order flow and PDA rate matrix conflict.

The long-term commercial activity,
the net sum zero line delineates,

the net buying and or net selling.

Now retail traders that know about
the net trader physician chart only

look at whether commercials are net
long for bullishness or net short

for bearishness on the market.

The smart money can be tracked by
focusing on the 12 month and six month.

Uh, the commercial net position.

Get the commercials are
above net's zero line.

We're gonna be focusing on the 12
to six month net long readings.

If commercials are below this airline,
we're gonna be focusing on a 12 or

six month range net short position.

We blamed these conditions with PDA Ray
matrix and institutional order flow for

optimal results and directional analysis.

So with this teaching, what we've done
is we were able to decipher what the

commercial actions are, whether they're
buying or selling and not relying so much

on whether they're below or above a zero
line as everyone else interprets price.

Using this information, looking
at that level here, we can see

how price went back to the 2014.

January highs and July highs and
cleared out as equal highs and fell

short from that position all the way
down to a level that was seen as a

discount array in the January, 2016
time period, this is the weekly chart.

So everything that we teach in
terms of res institutional order

flow, all those things get blended
together to get optimal results.

And now you entered the inner
circle as it relates to.

Hedging commercial activity
and cot until next time I wish

you good luck and good trading.