COT_Oscillator

The COT Ocsillator Indicator is a quantitative analysis tool that uses the positioning of so-called Commercials from the weekly Commitments of Traders (COT) report published by the CFTC. It is designed to detect extreme hedging behavior by institutional participants and translates it into a normalized scale from 0 to 100. The goal is to provide early indication of potential market reversals or overextensions.

What is the "Commercial Index"?
Commercials are market participants with a direct connection to the underlying asset – such as producers, processors, or large-scale users of commodities. They are often referred to as "Smart Money" due to their fundamental market insight and hedging purpose.

The Commercial Index measures where the current net position of Commercials (Long - Short) stands within a user-defined historical lookback window:

Index = 100: the most bullish net position in the selected period.
Index = 0: the most bearish net position.

How does the indicator work?
Data Source: The script uses the latest TradingView/LibraryCOT/4, which provides structured access to official COT data.

Calculation:
Weekly long and short positions of Commercials are requested based on the selected root symbol (e.g., "HG" for Copper).
Net position is calculated as: Net = Long - Short.
This value is normalized within the selected historical range (e.g., 150 weeks) between the highest and lowest net positions.

Result: A smooth oscillator ranging from 0 to 100 is plotted.

How to use the indicator?
Select your target future market (e.g., "GC" for Gold, "CL" for Crude Oil, "HG" for Copper).

Optionally adjust the three time windows to observe short-, mid-, and long-term sentiment (e.g., 125, 250, 500 weeks).

Watch for extreme readings:
Above 80–100: Commercials are heavily net long.
Below 20–0: Commercials are heavily net short.

These extremes are especially relevant when combined with price action, seasonality, or technical signals.

What makes this script unique?
Objective sentiment evaluation based on real institutional positioning.
Three timeframes shown in parallel for multi-horizon analysis.
No smoothing or distortion – raw positioning is visualized cleanly.
Useful in futures markets, where hedging behavior is a major driver.


Tips for Use:
Best viewed on weekly daily or charts (e.g., COMEX:HG1!, NYMEX:CL1!, CBOT:ZW1!).
Combine with technical setups or external sentiment tools for confirmation.
Can be used as a core building block in COT-based strategies or signal generation systems.


This indicator helps you track the footprints of Smart Money – and anticipate where the market might turn.