I need help on F&O analysis of Stocks. I came across a person who just gives tips on basis of F&O analysis Like by seeing Derivative positions he tells me Support & Resistance of a particular stock. This seems to work quite nicely. Can someone help me in how to analyze F&O position and find out Support & Resistance of a Stock.
My understanding is that tacking Open Interest alone does not signify much information, Exploring the correlation power of Open Interest, Volume and Price movement is important. Increase in Price with increase in Open Interest is positive for the stock (Fresh Longs). Decrease in Price with increase in Open Interest is considered negative (Fresh Shorts)
But what I want to know is how to identify Support & Resistance of a Stock using this. I know I am missing some basic understanding of the concept...and this wont be difficult for Traderji Members & experts. I want to identify Support & Resistance using derivative positions. Please help
Thanks
My understanding is that tacking Open Interest alone does not signify much information, Exploring the correlation power of Open Interest, Volume and Price movement is important. Increase in Price with increase in Open Interest is positive for the stock (Fresh Longs). Decrease in Price with increase in Open Interest is considered negative (Fresh Shorts)
But what I want to know is how to identify Support & Resistance of a Stock using this. I know I am missing some basic understanding of the concept...and this wont be difficult for Traderji Members & experts. I want to identify Support & Resistance using derivative positions. Please help
Thanks