Open Interest Analysis

J

Jayakumar.int

Well-Known Member
#1,024
#1,024
Ravish Sinha said:
How does open interest analysis vary from other indicators in your opinion, and why do you think it is valuable?
Click to expand...
Open interest in F&O are created for short term trend to hedge their positions in equity, analyzing OI trends helps to predict short term trend, this cannot be compared with other indicators as most indicators are based on price movement while OI based on net open positions.
 
Ravish Sinha

Ravish Sinha

Active Member
#1,025
#1,025
Jayakumar.int said:
Open interest in F&O are created for short term trend to hedge their positions in equity, analyzing OI trends helps to predict short term trend, this cannot be compared with other indicators as most indicators are based on price movement while OI based on net open positions.
Click to expand...
Oh, I see! Thank you very much for deconstructing Open Interest for me. It now makes perfect sense how the stock market is all about short-term trends and hedging.
 
timepass

timepass

Moderator
#1,026
#1,026
Jayakumar.int said:
Open interest in F&O are created for short term trend to hedge their positions in equity, analyzing OI trends helps to predict short term trend, this cannot be compared with other indicators as most indicators are based on price movement while OI based on net open positions.
Click to expand...
So, are there any indictors (like RSI, ADX etc.) for OI ? Is it possible to construct some indicators for this ?
 
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