New COT Analysis XAU/USD 19/09/14My previous interpretation of this value was that I looked if the potential went lower or higher than previous week for defining a trend.
But after watching a bit back in the past it shows more accuracy if the trend is defined by the point 1.
If the potential wents from over 1 to under 1 it becomes an uptrend.
If the potential wents from under 1 to over 1 it becomes a downtrend.
COT
COT Analysis 12. September XAU/USDWe had a lower shorting potential this week but the market did not go up. The COT shorting potential is a very qualitative value for predicting the market direction of the upcoming week. It depends on the relation to the last value.
The so called shorting potential is again the second time lower and the commercials are stocking up their long positions. Addiotionally we have Indian Celebration and Marriage season upcoming.
COT Analysis 5. September XAU/USDI made a calculation system which shows the shorting potential of a trading symbol through the COT report which gets released every friday afternoon. The movement for the next week can be calculated fundamentally for getting a value which just tells you the movement if you know the previous value and in this case the value for the next week is lower than the last week and this means a long potential.
Higher potential than previous week: downtrend
Lower potential than previous week: uptrend
KC shortKC broke tested for the fourth time the support at current level and broke, if there's follow through, it's a good short. Historically, July should be the seasonal low. COT report- commercial is not hedging at this point.