ADDITIONAL LEVEL.

TRADING VIEW SETUPS AND USAGES FOR SUPPLY AND DEMAND.

Supply and demand requires one to identify the levels {imbalances] at a respective chart, now
since the world wide community of supply and demand traders is big then there are some helping
tools that will help one to identify some various supply and demand patterns such as engulfing
patterns and 50% body candles.
The following are some of the tools that are free available on the trading view.
 Engulfing pattern-by alphonso Moreno
This tool helps one to indicate/identify both bullish and bearish engulfing patterns.
 50% body candle -by Dutch this is the tool that will help one to sport all the 50% body
candles on the respective opened chart by indicating a dot at the middle of the body candle.
FX
Example of the engulfing tool on the chart.
G
 FX
G

As yo can see the chart above the candles possess three colors the bearish engulfing candles have
their color and the color for bullishing engulfing candles.

COMMITMENT OF TRADERS REPORT ANALYS AND IN RELATION TO THE

CHARTS.
The commitment of trader is a report that is issued by the CFTC providing the breakdown of
each week open interest of the market.
This report shows the contracts details for both commercial and non-commercial market
participants.
NOTE: The contracts details are submitted by these market participants every Tuesday so that
the CFTC can have enough time to digest them on Friday.
This report consists of all open positions in the future market of the three main group market
participant.
 Commercial traders {hedger
 Non-commercial traders
 Non- reportable retailers
The breakdown of this report gives a powerful detail on what the big dealers have been doing
and what they are planning to do in the future.
FX
The concepts of taking this report in consideration is to eliminate all possible noise found on
the market.
Note: this report consists of a lot of details in it so we only concern with the commercial and
non-commercial report together with the open interest.
Question comes in mind what is an open interest?
An open interest is the total number of outstanding contracts that are held by the market
G
participant at the end of each day.

Why do we need to know the open interest?

Scenario one:
What happens when the open interest increases?
The essence of an increase in open interest means that new money is flowing into the market
due to traders opening new positions creating new transactions this results a present [UP,
DOWN, or SIDEWAYS] will continue.
But on the other side Scenario two:

Declining of open interest means market is liquidating implies that the present price trend
is counting to an end.
Note: if the interest rate is rising with price then this implies that the bull market will continue to
the same direction. [same applies to the bear market].
Below is a simple table showing the relation between interest rate, price, and volume.
Price Volume Open interest Interpretation
Rising Rising Rising Strong market
Rising Falling Falling Weak market
Falling Rising Rising Weak market
Falling Falling Falling Strong market

HOW TO FIND THE REPORT?

The report can be found on CFTC website under the market report & economic analysis in the
main menu then select commitment of traders tab.
FX
-Then go to Chicago mercantile exchange.
In here there are a lot of report we are only concern with the short format report.
In this short format report we will only concern with the data of the major pairs.
G
 FX
G

After select the market data and economic analysis scroll down to current legacy reports from
current legacy report table select short format report under Chicago mercantile exchange.
 FX
The short format report has a lot of information in it we are only interested in currency data’s, so
scroll down until you find data’s for the Canadian dollar.
G
From the Canadian dollar all the data’s regarding the major pairs will be displayed.