ICT Commitment of Traders

The ICT Commitment of Traders indicator is a specialized analysis tool designed to visualize and interpret the Commodity Futures Trading Commission (CFTC) reports to identify institutional sentiment. It automates the calculation of the "Hedge Program" for Commercial Speculators, helping traders align with large-scale market participants by analyzing net positions relative to historical extremes.

Usage

The tool is primarily used on daily timeframes or higher to analyze the Commitment of Traders (COT) data for futures and correlated markets.

• Hedge Program Analysis: The indicator calculates a "zero line" based on the highest and lowest net positions over a specific period (e.g., 6 months). When the current net position is above this calculated midpoint, it signifies a bullish hedge sentiment; below it signifies a bearish sentiment.
• Timeframe Filtering: The script automatically adjusts its lookback period based on the chart timeframe (Auto mode) or allows for manual selection (3 months to 4 years).
• Multi-Market Dashboard: A built-in table displays the sentiment across various lookback periods (3-Month, 6-Month, etc.) for the current symbol and can be configured to show correlated markets.
• Institutional Alignment: Use this tool to cross-reference COT data with Institutional Orderflow. A bullish "Hedge Program" coupled with bullish orderflow provides a higher-probability long narrative.

Details

The indicator focuses on the Commercial Speculators' Net Position (Commercial Longs minus Commercial Shorts). While many traders only look at the absolute net position (the Main Program), this script implements the ICT concept of the "Hedge Program."

The Hedge Program is derived by applying a lookback period to the net position data. By identifying the range between the periodic high and low, the script establishes a dynamic equilibrium line. This helps filter out market noise and reveals whether commercials are aggressively hedging toward the buy or sell side relative to their recent historical behavior.

Settings

COT Data

• COT Hedge Program: Selects the lookback period for the Hedge Program calculation (Auto, 3 Months, 6 Months, 12 Months, 2 Years, 4 Years, or Custom).
• Include Options Data?: Toggles whether to include option positions in the COT calculation.
• Custom COT Look Back: Sets a specific start date if the "Custom" lookback option is selected.

COT Data (style)

• Show COT Data?: Toggles the visibility of the COT graph and zero lines on the sub-pane.
• Comm. Spec. Net Position: Sets the color for the line representing Commercial Speculator net positions.
• Main Zero Line: Sets the color for the static zero line.
• Hedge Sell/Buy Area: Customizes the background colors for the premium (sell) and discount (buy) zones of the hedge program.

COT Table Info

• Show Info Table?: Toggles the visibility of the data table.
• Show Multi-Market Data?: Enables the display of COT data for correlated markets (requires manual symbol entry in the script).
• Table Style Settings: Options for Table Size, Location (Top, Middle, Bottom), and text colors for buy/sell signals.

FAQ

How do I interpret the "BUY" and "SELL" signals in the table?

"BUY" indicates that the Commercial Speculator net position is above the midpoint (zero line) of the selected lookback period, suggesting a bullish hedge stance. "SELL" indicates it is below the midpoint.

Why do I get a runtime error on lower timeframes?

COT data is released weekly by the CFTC. Because the data frequency is low, the indicator requires a Daily timeframe or higher to accurately process and display the information.

How do I access ICT Commitment of Traders?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.