If you are an Option Trader, you already know how important Open Interest (OI) is for your trading decisions - be it for intraday trading or carrying forward positions.
On Dhan, we know this and have the Open Interest data on Option Chain in real-time across all the Dhan platforms. But this has no trail with respect to time - so you know what is the open interest at that moment, but did not know how OI has changed over the period of time.
As we could have had it, we already had many requests from Option Traders on Dhan to bring this to you. So here we are - to make your trader experience even better and help you stay informed about your trading decisions - we’re now introducing Open Interest as an Indicator for all individual F&O Scrips across all Dhan platforms on the TradingView charts.
With Open Interest Indicator you will get a line chart plotted with respect to the time scale, corresponding to each candle above on the chart. This was the most asked indicator in the community and yes, we are here with it. We tried to deliver it as fast as possible and made sure that it was optimum and up to the mark.
How to interpret OI indicator
The OI line chart is plotted with a timestamp as an indicator on the chart. Here, for example in the above chart (illustration only) we have Price and Open Interest as two data sets to interpret.
- OI is increasing and Prices are also increasing. We can conclude that fresh longs are building up and the market is bullish.
- OI decreasing & prices also decreasing, so Longs are unwinding. This is kind of squaring off the longs.
- OI increasing & price decreasing, shorts are building up. The market can be bearish.
- OI decreasing & price increasing, shorts are unwinding. Squaring off the shorts.
We can combine volume also with this dataset and weightage the signal. Open Interest (OI) Indicator is now available on all Dhan platforms - Dhan Mobile app, Dhan web, Options Trader & our TradingView console on (tv.dhan.co).
We have already introduced 100+ indicators on our Dhan trading platform and we’ll be adding more over time. To sum up, as usual, our endeavor is to give you the best possible trading experience on Dhan with every new upgrade and feature launch.
We would love to hear what you think about this one. Thank you.