Now Available on the NinjaTrader platform!
What is the UppermanCF? The "UppermanCF" is a unique COT indicator that tracks the spread between the net-commercial position and net-large speculator position. The UppermanCF is derived from data contained in the traditional COT report. The latest UppermanCF value represents the current size (-100% to +100%) of the net-commercial/net-large speculator spread versus the current 5-year extremes. A reading of +100% would indicate the net-commercial to net-large speculator spread is at a positive 5-year extreme. A reading of -100% would indicate the net-commercial to net-large speculator spread is at a negative 5-year extreme. A positive reading indicates the net-commercial position is positive relative to the net-large speculator position while a negative reading indicates the net-commercial position is negative relative to the net-large speculator position. An extremely negative reading is traditionally considered to be an indication the market may be near a top while an extremely positive reading is traditionally considered to indicate the market may be near a bottom.
The UppermanCF is derived entirely from data contained in the traditional COT report. This indicator does not take into consideration the price behavior or price trend. Therefore, it is suggested that this indicator be combined with price indicators.
In the two graphs above, the red line represents the UppermanCF . The blue line is the price. The black horizontal lines mark the upper and lower extreme areas, these are set at +/- 70%.
The top graph (CCH) is cocoa and shows an extreme (positive) UppermanCF of +100%. The bottom graph (SMH) is Soybean Meal and it shows an extreme (negative) Upperman CF of -99.93%.
Why is this indicator important?
Based on this indicator a trader can make a more informed decision on what trades have the potential to generate a profit. The Commitments of Traders (COT) data is unique and separate from traditional price indicators. Indicators (such as UppermanCF) derived from the COT can identify trading opportunities that price indicators may not spot. In addition, COT indicators can provide traders with some insight as to the potential profit that a trade might generate.
It is important to understand not only the insights to be gained from the COT data, but how it can be used in conjunction with other trading indicators to enhance a trading system and/or strategy. The COT data can be used in any commodity market, including agricultural, natural resources, and financial.
This indicator can help you:
- Learn to anticipate future turning points before they happen.
- Identify the significance and potential profit of a technical buy or sell signal.
The COT reports provide market transparency and unique insight by revealing the trading activity of specific participant groups (speculators and physical hedgers). Many professional traders track and study the COT data to gauge market vulnerabilities and to determine whether or not a change in the price trend is very likely. Price trends often begin when certain COT conditions exist. In addition, the COT data can reveal the health of a longer-term price trend, and the likelihood of a change in the price direction. The COT data provides traders insight into where markets are in the process of accumulation or liquidation as well as revealing the fundamental driving forces in the market. Through years of study Floyd Upperman has noted a tendency for markets to go through periods of speculative "winding up" and "winding down". For example, when a market is moving higher the speculative traders are winding up longs. Eventually the market will become very vulnerable due to this activity as a large number of longs will be wound up. The process of unwinding the large number of longs is likely to send prices down. The COT reports provide traders with the means to monitor this activity. Floyd Upperman believes the COT is the perfect data to use in conjunction with traditional price indicators for tracking and trading U.S. futures.
* Why have the UppermanCF indicator on NinjaTrader if its already provided on Floyd's website?
By loading the UppermanCF indicator into the NinjaTrader platform, you can incorporate this indicator into many different trading systems and strategies. You can also test the performance of the indicator using the features available within the NinjaTrader software. Keep in mind however that this indicator works best when combined with price derived indicators. It is a leading indicator and should be used in conjunction with other technical indicators.
The price of the CF indicator is only $99.00 per month. Not only will you get the CF indicator, you will also get access to FUA online trading software which provides traders with access to many other unique COT indicators, and market tracking features and powerful futures trading tools, such as COT charts, indicators, disaggregated and TFF COT studies as well as unique price indicators, price pattern recognition and seasonal indicators.
If you’re interested in learning more about the COT and wish to incorporate the COT into your trading approach, this is the indicator you may be looking for. If you would like to check out our service on a trial basis, we are providing a once only (once per lifetime) trial access for 3 weeks for only $29. To activate your $29 TRIAL please click here.
IMPORTANT (PLEASE READ)
The UppermanCF indicator is available on www.upperman.com (members area). After downloading, the indicator must be activated by us. The indicator will stay active during the trial period and will stop working once the trial has ended. If you convert to regular membership during or immediately following the trial, the UppermanCF will remain activated on your NinjaTrader platform for the duration of your membership.