All language subtitles for 4_foda010002

and understand however when you
when you actually spend some

was a bit of a long one but I
just wanted to make everything

will actually rise and that's
when we know we want to be the

time on it which I would highly
recommend just go through all

seeing for example more JPY
shorts less JPY longs see does

can always look at so guys
that's it for this lesson it

these reports link also to your
charts as well so you if you're

confusing at first because
there's a lot to actually grasp

and you're going to have really
clean order flow and when you

this actually translate into
the market it's not going to do

extra confirmations that you
need to look at might be a bit

relate this to your technicals
you'll be really able to

and there's more orders you're
going to see that this number

market at the time because
you're getting that them orders

November time when liquidity in
the market actually builds up

it's a volatility indicator
however what we actually mean

number is less than eight it
shows low volatility in the

because we got 5. 27 therefore
we can imply that the market

reading we're getting 5. 27 now
what have we just said if the

this chart onto perhaps
September or October and

Therefore using this
information you must understand

to be careful and reduce the
risk in the market. If we push

market by volatility it says
volatility volatility because

is liquidity you know how much
how many orders are going

through into the market and
everything like that. So

has low volatility as expected
during the summer markets.

as clear as possible so guys
take care and I'll see you in

here EuroFX Vics the main part
that we're going to be looking

at is the chart right here in
this case at the moment it's

it in. Once you get that open
you've got the main area right

straight away and this is the
link for it if you want to type

100% of the time however this
is sort of an indicator that we

something that you could look
at weekly but personally I

shows good volatility. Now
where can I find this? So you

type in Barchart. com again.
Obviously now now guys you can

volatility in the market. If
the number is than eight it

report is more of a weekly
thing. However, because the

see how useful this this
website actually is and you

understand it well so yeah guys
all this is is simply just some

trade? If the number is less
than eight it shows low

type in the Euro FX Vix and it
should come up on Google

your bias. Um so as you can
tell from the open interest

volatile the markets are at the
moment and is it a good time to

drastically every single week.
So, Um so yeah the COT report

before you get into any of that
and have these two

Now what this is is simply a
chart or a number to show how

you you would usually type this
contract in as a dollar EVZ.

it's only really effective on
the higher time frame whether

trying to get a grip on
fundamentals at the time. So as

confirmations as simply just an
extra step. They will confirm

I said from the start we're
going to be looking at the open

attractive to investments
therefore you may see euro

would usually look at it
monthly and when I'm really

institutions are doing in their
open positions. Now the

it be six month, 3 month,
whatever type. Um but the COT

using both the open interest
and commitment of traders

buys that's when you'll start
to see this open interest go

because once you once you're in
this consolidation area the

So like I've said how to use
these confirmations overall

So for this we use something
called the Euro FX Vix. Um you

contracts are so large, you
can't expect it to change

report can help long term
understanding of what

then the change of the shift in
trend when you start to see the

back up.

interest will drop and then
eventually rise when you start

sales that have continued at
this point the open interest

to see the buys happening. The
reason it will drop is be is

therefore the euro contract and
bonds or whatever it is is more

start to buy obviously I'm not
saying that right now but this

is going to drop as well. Once
you get that drop in line and

it's coming towards the end of
August in 2021 and this the

at that point whether this was
spurred on by fundamentals at

interest commitment of traders
and also volatility indicator.

important thing here is to
already have a directional bias

interest in for the euro
contract is building up

you can see right there you've
got the different ranges right

open interest is for the sale
buyers and that's exactly what

because we're looking for sales
we can only assume that that

for that is going to drop. So
what does that mean? The line

interest is increasing at that
time and what can we expect

therefore so you're not going
to understand whether it's

the contract amount is
increasing and the open

that now if you were trading
during that time and you saw

is what you can expect if we
start to see that happen

the monetary policies actually
play out like that and you

the time in terms of interest
rates in terms of other types

thing you could have done is to
actually look at this open

price eventually started to
sell off completely for the

buyers for example whether this
is increasing interest rates

expected to see or to keep on
seeing sales one of important

interest graph and see what was
going on as soon as you start

to see this open interest start
to spike up what does that mean

a change in fundamentals and
for some reason we expect

happened now how to use this
now if we start to see a change

options that you've got there.
Um in this case I've looked at

research on it but for some
reason the euro sold completely

there. We've chosen the six
month time frames to have a

there. So how do we actually
use the open interest line? So

euro. Now I can't remember
exactly because I have to do my

going to show and represent is
what happens at certain stages

in a graphic form right here.
And the way to do that is you

as you can see right here we're
on the six month time frame. As

you search and then you open up
the chart through here press

type in commitment of traders
and that would come up right

to all at the bottom over here
we've got the COT data So

press that plus study sign.
When you go onto it you just

the October 1 the November one
the December that keeps on

from one of one of the videos
where we briefly went over

relevant to this time you know
we're at the end of August and

refreshing every single month
but because this is the most

is a September 2021, then that
renews you've got you've got

add is go to the study area
right here add in open interest

that's going on in the economy
and do not use this as the

full chart and this is where
you get up what you've got to

comparing different types of
economies so if if you can see

remember how we had all of this
in number form. You can have it

moving on to the second part
that we were looking at was

amount of interest in that
market and the amount of orders

the Euro FX September 2021
contract. So if you remember

and that will come up the open
interest line is that pink line

Barchart. com there's different
types of contracts so this one

we'll look at so when you open
up the chart so this is when

we're getting into September
right now that's the one that

building up for buys or the
sales so you just understand

of monetary policies clearly
there's there's a reason for

simple go to because a lot it
can be very misleading

Barchart. com and then at the
up or down one of any of the

spreadshears on futures then
you can look at the different

open interest so as I've
explained it just shows the

cleaner and then of course got
all the data right there now

got to always look back to your
other resources and everything

longer term perspective. Now
what the open interest line is

that are going through so the
way you look for this is go on

how the market is moving where
all the orders are going

that more JPY contracts are
being sold and then for example

look at fundamental bias the
other factors that we look at

you can assume that EuroJPY
will be buying however you've

through and also put into
perspective when you're

monetary policy or whatever
this is the more important

it's just going to be this
obviously shown it just a bit

thing but the COT report is a
great way to actually quantify

know intra day and on the one
hour time frame for example. In

terms of the second website
that we use this is if you want

here you've got Euro more
contracts are being bought then

report but when it comes to
understanding it they see oh

in the market. Now right here
we got to a certain stage where

long long period of time so
it's not going to help you you

so just type that in obviously
to Google or whatever it use

change in in contracts as well.
And of course when you actually

sometimes because these are
contracts that happen over a

okay now we've got more JPY
contracts as shorts rather than

I even moved on move on to the
second page but a COT report is

actually move the markets of
course is going to be that

they are longing and this is
what we need to as you can see

what a lot of retail traders do
is they know about this COT

buyers therefore I should keep
on shorting keep on shorting

keep on showing JPY however
this isn't the case what

simply an extra confirmation of
our of our buyers because what

terms of looking back but in
terms of looking forward as

orders going through going to
shorts Longs are 13. 8%. This

is exactly what we're looking
for. Now know one thing before

percent of open interest you've
got 48 percent of the of the

short position so that's
obviously buy and sell

we're seeing that more
institutions are longing no

to quickly and briefly look at
it I've got the link over here

500, 000 so I believe that's
the total amount of contracts

because it's all the numbers
but let me just break it down.

that there are then if you look
at the breakdown of it this is

positions then you've got
contracts of JPY 12 million

are the businesses for example
so they would buy that future

said so if you look at it
you've got long shorts and then

wanting to export something and
buy something or import

spreads main part again is
going to be the long and the

that we're going to be looking
for because that is actually

as I've explained throughout
the whole thing whether it be

we'll be looking at is the
short format and this is exact

market. In terms of
non-commercial this is the one

current legacy reports and the
part that we're going to be

the non commercial the
commercial are the guys who who

confusing. Um you don't really
understand what's going on

direct effect in their
marketplace so if they're

contract or whatever it is as a
trade but in fact this has a a

something from Japan example
they would have to purchase

some JPY contracts or JPY
currency and that's what the

non-reportable positions is
retail trades like me and you

commercial side is the non
commercial is the banks as I've

for example where our trades do
not even create a blip in the

futures contracts only so not
futures and options we're

type of future market that it
is. Now you've got

So in this case we're going to
be looking at the JPY futures

non-commercial, commercial and
then total. And then

you're going to get to this
part this subsection called

more institutions are shorting
and selling JPY contracts than

this is what we're going to be
looking at. So in this case

well you may not see a massive
massive increase or decrease in

what it looks like. So of
course at first it looks very

has all the different types of
data but the main one that

the banks and all the larger
institutions and they're called

I'll explain. That's the one
that I usually use if I do look

contracts. Here it shows a date
the code is relevant to the

the contracts because they're
so large anyways but roughly

what's happened previously. Now
of course this is good good in

so it's also it also depends on
the week that's just passed as

believe comes out once a week
sometime at the end of the week

coming through for the next
week but it's going to be or

well so it's not that it's
predicting the orders that are

looking at is the Chicago
Mercantile Exchange and then

going to be looking at the
short format the long format

at COT data. Um so you go onto
the website the CFTC website.

JPY in the recent week so just
to let you know the COT data I

Um go to the market data and
economic analysis section. Then

scroll all the way down to the
bottom of the page eventually

the part that we're going to be
looking for so as you can see

show how many orders have gone
through for the euro it will

trades at that moment

website and the second way is
going to be a lot quicker that

to get it all. The official way
is to go through the CFTC

asset type so again if we take
the Euro example it's going to

you go on the left hand side to
commitment of traders. So

So how to find all this
information? There's two ways

show how many orders have gone
in for sales and how many have

be a line showing how many
people were actually in in

the market so if we're looking
at the euro for example it will

gone in for buys then when it
comes to open interest it's

simply a a line chart showing
the amount of orders on an

it's a document that shows
every single recorded order in

report and then you got open
interest. So for commitment of

trades report also known as
COT. Um it's understanding the

order sizes of types of traders
and institutions into certain

it consists of two components.
You've got commitment of trades

will be the final step before
you actually understand your

asset classes and currency
pairs. So what this report is

going to look at is the
institutional orders. So that's

steps to actually enter the
trade. So first things we're

bias your complete bias and of
course you can make the next

it's data, some kind of GDP
data, CPI, whatever it is. This

whatever reason may be, whether
it's monetary policies, whether

tipe of confirmation her
because we are actually

fundamental confirmations, so
we would outtain now

directional buys on the stand
they because about ähm you know

will year look this, some
confirmations is a different

institutional oder so i you
remembery now technical section

Yes guys, welcome to the next
video so and this one with's

gonna be you can assome
confirmations ähm an dem Bezirk

the next video