Relation between OPEN INTEREST and PRICE movement and indications

#1
Hi All,

I know that open interest and price movement together gives some very useful indications about the future prices.

Curious to know how they are related and how they help in taking positions. for example what does raise in open interest and raise in price indicates ? ..

I would like to know the indications for the below four conditions and how they help to take positions or give some clue about the movement for next trading days.

1. OI increases and Price increases
2. OI increases and Price decreases
3. OI decreases and Price increases
4. OI decreases and Price increases

Kindly request your help in understanding more about the open interest and how they help.

Thank you very much in advance for all the information you share....

Regards,
Kiran
 
#2
1. OI increases and Price increases that indicate STRONG can go Long
2. OI increases and Price decreases that indicate WEAK can go Short
3. OI decreases and Price increases that indicate WEAK can go Short
4. OI decreases and Price increases that indicate STRONG can go Long




with regards

Monjul Hoque

Note: please inform whether you benifit from it.
 
#3
1. OI increases and Price increases that indicate STRONG can go Long
2. OI increases and Price decreases that indicate WEAK can go Short
3. OI decreases and Price increases that indicate WEAK can go Short
4. OI decreases and Price increases that indicate STRONG can go Long




with regards

Monjul Hoque

Note: please inform whether you benifit from it at [email protected]
 
Last edited:
#5
1. OI increases and Price increases that indicate STRONG can go Long
2. OI increases and Price decreases that indicate WEAK can go Short
3. OI decreases and Price increases that indicate WEAK can go Short
4. OI decreases and Price increases that indicate STRONG can go Long




with regards

Monjul Hoque

Note: please inform whether you benifit from it at [email protected]
there is no difference 3 and 4 point
(ie,3. OI decreases and Price increases that indicate WEAK can go Short
4. OI decreases and Price increases that indicate STRONG can go Long)
 

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