Spot trending moves! - Futures Price + OI Trend
· 13.07.2023 · 15:46:35 ··· ··· Thursday ·· 4 (4)
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Open Interest is one of those key data points in futures and options trading that holds a lot of analytical information. This data can be used to identify not only the extent of participation but also trend of the underlying adding on to the price behaviour.
In this video we have tried to explain the Open Interest strategy. Open Interest of Futures is analyzed to come up with an approach to avoid small perturbation and focus on the broad, emanating trend.
Discussion of open interest would be incomplete without the mention of the necessary conditions that exist with price action.
On the bullish end:
Longs = Price Up + OI Up (L)
Long Unwinding = Price Down + OI Down (LU)
On the bearish end:
Shorts = Price Down + OI Up (S)
Short Covering = Price Up + OI Down (SC)
Identification of Move in the Making after this is simple
14/20 Days with L or LU = Bullish Cycle
14/20 Days with S or SC = Bearish Cycle
Every move that we identify can be monetized only if we have good entry and exit, at times with the broader trend in the backdrop.
In this video we have used tools developed by Quantsapp, India’s largest options trading analytics platform.
In this video:
00:00 How to capitalize on significant moves??
00:20 What to watch out for? In terms of Derivative data
01:30 Spot the OI cycles using Quantsapp Built-up cycle
05:20 Outcome of Quantsapp Built-up Cycle: Scan
06:28 Discussion of avoidable trading mistakes
08:17 Summary
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#optionstrading #nse #futuresandoptions #intraday #nifty #futuresandoptions #futuresprice #priceaction #priceactiontrading #quantsapp
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