Commander in Pips: If you remember, when we’ve spoken about comparison of futures and forex markets, the one major difference was in type of trading. Futures trade on exchanges while forex is not. One of the sentiment indicators is a trading or tick volume. And futures do have it. Pipruit: And how it could help us? Commander in Pips: Although we have not discussed volume indicators, the major point of the classical approach tells us that any significant move should be confirmed by trading volume. If the market moves up, but trading volume reduces – it tells us that the majority does not support this move – market sentiment is not on the side of the upward move. So, retracement or even reversal is near. Here is another example – let’s suppose some asset shows a drastic reversal with a huge move and this counter-direction is supported by trading volume. It tells us that sentiment is on the side of that move and most participants agree with it. But we can’t use trading volumes for forex market… Pipruit: Oh, so, what are we going to do then? Commander in Pips: There is something that is called the Commitment of Traders (COT) report. Commitment of Traders (COT) report This report is released by the Commodity Futures Trading Commission and they publishe it weekly (on Friday between 14:00-15:00 EST). Here is the link for the page of the report: Commitments of Traders - CFTC Pipruit: Ok, I see, but how we can use it, and why is this report so valuable?