Inner Circle Trader - WENT 04 - Forex trading on session highs/lows and COT trends

Sep 19, 2026

Upload by Aria

Notes on Forex trading using monthly highs/lows, session-based reference levels (Asian, London, New York), and practical risk guidance. Emphasizes using lookbacks of at least two sessions, referencing London levels for New York, and handling corrections versus bear markets. Integrates COT data to interpret the Commercial trend via extreme net longs/shorts, to time entries with market structure, support/resistance, and harmonic OTE patterns, while filtering long/short setups at 12-month and multi-year extremes.

LanguageEnglish

CategoryTechnology

FormatPDF

Pages7

Reading Time18 min

AccessFree to download

Session highs & lows referencing

Asian, London, and New York session relationships

Lookback rules and reaction levels

COT-driven trend guidance

Net longs/shorts interpretation for Commercials

Large speculators and risk control

Entry timing and trade filters

Support/resistance and market structure

Harmonic and OTE patterns

Trade management and execution

Risk reduction and stop-raid liquidity zones

Long/short filtering at extremes

WENT 04 Tuesday, July 29, 2014 8:16 PM You can trade monthly highs & lows with a day job. When looking to key off daily highs & lows you should look as far back as the last 3 days and maybe even the day before that. Look for rejections at these levels and anticipate price patterns to form if they line up with a session opening. The Asian session highs and lows are highly sensitive on an intraday level. If you are going to be a New York session trader, you need to be referencing the London session highs and lows. New York session highs & lows are going to be influential in the following Asian session. You should also consider the previous London session if you are going to be trading the Asian session. Always look back at least 2 sessions from the session that you are currently trading. As a new trader, institutional price levels and big and mid figures are a great place to start out. .00, .20, .50, .80 In Forex you can tailor risk parameters like no other. Forex traders don't trade in contracts, they trade in lots. When we violate a 12 month high or low in the COT data, that is usually a trend changing environment. Over a 4 year span, a major tide change is really under way. Large speculators are trend following in nature and that is very important. These are the fund managers and it is important to look at the relationship between these fund managers and the large Commercial hedgers. The large speculators have a really good track record of being right during long trends. They don't care about tops and bottoms because they have such good risk control and you shouldn't either. You don't need the highest high and lowest low, you should just be focused on trading during the lion's portion of the move . Neophyte traders are all about trying to find the top and trying to find the bottom. They also think it has already traveled to high and they don't want to buy it right now. In this video, ICT uses the 18EMA and the 40EMA, not the 18EMA and 9EMA that I have seen him use in other videos. Professional traders wait for the low to form in price action. Trading long with the understanding that Commercials will be selling the market to them. When you are point 2 in the image above, do not think that you are in a bear market. It should just be a correction. At point 3 you want to be looking for swing and position trades going long. That is when the big moves happen. You can take shorts at point 4, but they will be short to intermediate term in duration. It will be another retracement in an up move . Point 5 is another buying opportunity and is like an oversold condition to you. Point 6 would indicate a likely high to form in the market. Reduce risk on long positions and filter out more long positions from your trading and start looking for selling opportunities. Understand the Commercial trader's trends by looking for the extreme net longs and extreme net shorts. COT information is free, the government forces large traders to tell us whether they are net long or net short. Imagine if they did that for stocks! No one would have problems making money. In the yellow area above, you would have great success looking for bullish divergences. It is an optimal trade entry around the big figure 1. 3000 and in the direction of the Commercial trend. The Commercial 's were extremely net long before this and then there was a small retracement to let you get in sync with the trend. It is not just simply having the net short position or the net long position, that is not enough. You need to have support & resistance, you have to have market structure, etc. all together to complement your COT analysis. In the example above, you should definitely start waning back the risk on your short trades and start expecting some level of rejection around high time frame support levels. All you need to know is where we are at in terms of the trend and then you can get in sync with that

FAQs

What session levels should a New York trader reference?

Trade in the direction of the most recent 12-month Commercial net position and wait for intermediate-term swings to form. Filter longs and shorts using fresh 12-month and/or 4-year COT extremes on Commercial net positions, then trade with the COT trend engineered by the Commercials.

Why is COT analysis more than just net long or net short?

Net positioning alone is not enough. You also need support and resistance and market structure that complements the COT analysis.

Which entry models are recommended for aligning with large traders?

Use OTE patterns to enter and trade with the large traders (trend-following traders), and look for bullish harmonic patterns and optimal trade entries during retracements after explosive moves.

Sep 19, 2026

Upload by Aria