Ziwox Academy
How To Use COT Part 1/2
We can take good data from COT report during several weeks net positions changes. this changes of Net positions show us a good point of view of the market behavior.
As you see, #EUR Long net position decreased in several weeks ago.
What does this mean?
1. Some of the Long positions were closed
2. Some new Short positions are taken
What next is going to happen? do you think this two type of traders keep their positions for lifetime?! Of course not.
Think about this Example:
Supposing that you took a long position on EURUSD one month ago. There are a lot of traders like you have taken a long position too. What will happen if all traders close their long positions to cash their profit?
We call this "Position unwinding"
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