An increase in open interest suggests that additional or new money is flooding into the market because more traders have opened positions for the day than closed them. In contrast, a decrease in open interest indicates that money is flowing out of the market because more positions close than open.
It involves the use of computer programs to execute trading strategies automatically. Among the various factors considered in algo trading, open interest (OI) stands out as a key metric used by traders to understand market sentiment and make informed
What is OI in technical analysis?
Open interest is the total number of futures contracts held by market participants at the end of the trading day. It is used as an indicator to determine market sentiment and the strength behind price trends.
How to know if nifty is bullish or bearish?
Readings above 80 indicate a security is overbought. Readings between 55 & 80 indicate Bullish condition. Readings between 45 & 55 indicate Neutral condition.Readings between 20 & 45 indicate Bearish condition.Readings below 20 indicate a security is oversold.
