COT 3X OR ABOVE MARKER

COT 3x Circle Marker — Logic & Usage

COT 3x Circle Marker is an orderflow-based visual indicator that compares COT High and COT Low values on every candle.

The purpose of this indicator is to quickly highlight candles where one side of COT activity is 3 times or more stronger than the other side.

This helps traders identify candles where strong orderflow activity is concentrated either near the high of the candle or near the low of the candle.

Core Logic

For every candle, the indicator reads:

COTH = orderflow.cothigh

COTL = orderflow.cotlow

Then it compares the absolute values of both.

Top Circle Condition

A red circle above the candle is plotted when:

COTH >= COTL × 3

Example:

COTH = 30
COTL = 10

Since 30 is 3 times 10, a red circle will be printed above the candle.

This means COT High activity is strongly dominant compared to COT Low activity.

Bottom Circle Condition

A green circle below the candle is plotted when:

COTL >= COTH × 3

Example:

COTH = 100
COTL = 500

Since 500 is 5 times 100, a green circle will be printed below the candle.

This means COT Low activity is strongly dominant compared to COT High activity.

No Circle Condition

No circle is printed when the difference between COTH and COTL is less than the selected multiplier.

Example:

COTH = 50
COTL = 40

Here, neither side is 3 times greater than the other, so no signal is plotted.

How To Read The Circles

Red Circle Above Candle

A red circle means:

COT High is 3x or more greater than COT Low

This shows strong activity near the candle high.

It can be useful for identifying:

aggressive activity near the high

possible supply/rejection zone

possible breakout participation

possible trap if price fails to continue above that candle

Important: A red circle is not automatically a sell signal.
Its meaning depends on location and follow-through.

Green Circle Below Candle

A green circle means:

COT Low is 3x or more greater than COT High

This shows strong activity near the candle low.

It can be useful for identifying:

aggressive activity near the low

possible demand/absorption zone

possible bounce area

possible breakdown pressure if price fails to recover

Important: A green circle is not automatically a buy signal.
Its meaning depends on price location and confirmation.

Practical Trading Usage

Use this indicator as an orderflow imbalance attention marker, not as a standalone buy/sell indicator.

Best confirmation tools:

VWAP

VPOC

volume profile levels

previous day high/low

support and resistance

footprint imbalance

delta/CVD

candle close confirmation

market structure

Best Use Cases

1. Reversal Setup

If a green circle appears near support, VWAP, VPOC, or previous demand zone, and price starts holding above that candle, it may indicate possible absorption or reversal.

Confirmation:

Green circle + support zone + next candle holds low + bullish close

2. Rejection Setup

If a red circle appears near resistance, VWAP rejection, VPOC rejection, or previous supply zone, and price fails to continue higher, it may indicate possible rejection or trap.

Confirmation:

Red circle + resistance zone + next candle fails high + bearish close

3. Breakout Continuation

If a red circle appears during a strong breakout and price closes above resistance with volume, it may support breakout continuation.

Confirmation:

Red circle + breakout candle + close above level + follow-through candle

4. Breakdown Continuation

If a green circle appears during a breakdown and price closes below support with selling pressure, it may support downside continuation.

Confirmation:

Green circle + breakdown candle + close below support + follow-through candle

Settings

Compare Multiplier

Default value:

3.0

This means one side must be at least 3 times greater than the other side.

Aggressive traders may reduce it to 2.5.
Conservative traders may increase it to 4.0 or higher.

Circle Offset ATR Multiplier

This controls the distance of the circle from the candle high or low.

It uses ATR so the circle position adjusts according to market volatility.

Circle Size

Controls the thickness/visibility of the plotted circle.

Important Note

This indicator does not predict direction by itself.

It only highlights candles where COT High or COT Low is strongly dominant.

Always combine it with market structure, VWAP/VPOC location, support-resistance, and next candle confirmation before taking trades.

Simple Interpretation

Red circle above candle = COTH is 3x or more than COTL
Green circle below candle = COTL is 3x or more than COTH
No circle = no strong 3x COT dominance

Best use: Identify high-interest orderflow candles and then wait for confirmation.