Dear mvkarthik,
I went through the thread carefully and have some very basic fundamental questions.
Q1) Just as MAX OI is important, shouldn't we also look at MIN OI? This would represent the strike prices that Bulls/Bears are no longer willing to protect.
Q2) CHOI also contains negative number. shouldn't the comparison be made on absolute values? Positive MAX CHOI would imply significant increase in interest at a given level whereas negative MAX CHOI would imply significant decrease in the interest at a given level?
Also, I would like to re-summarize the important rules here. Please take time to review them and confirm that I've not misunderstood any rule.
1) If the MAX CHOI of PE is higher than the MAX CHOI of CE, it is a LONG signal (BUY) on the underlying stock/index.
2) If the MAX CHOI of CE is higher than the MAX CHOI of PE, it is a SHORT signal (SHORT) on the underlying stock/index.
ALSO
3) When MAX CHOI of PE reaches and exceeds 10 lakh and is also higher than the MAX CHOI of CE, it is further confirmation of a LONG signal
4) When MAX CHOI of CE reaches and exceeds 10 lakh and is also higher than the MAX CHOI of PE, it is further confirmation of a SHORT Signal
5) When both, MAX CHOI of PE and MAX CHOI of CE, reach and exceed the value of 10 lakh, the market is likely to be remain range bound, so Buy a Call near the lower levels of the range and Buy a Put near the upper levels of the range.
there is no benefit,looking MIN OI, MAXOI Lvs are important were Bulls/Bears trying to
protect the Lv
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negative MAX CHOI-Bulls/Bears unwinding that LV, or profit booking ,or Stop loss hit
Positive MAX CHOI-increase in MAX CHOI its a good signal
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all the summarize rules are right,use this rules with chart
10 lakhs value-
Increase in MAX CHOI is important like today
CE8600
MAX CHOI Time-9.47
CE-8,600 - 551,250
MAX CHOI Time-9.55
CE-8,600 - 612,000
MAX CHOI Time-11.00
CE-8,600 - 848,900
MAX CHOI-Time-11.39
CE-8600- 902,975
see the MAX CHOICE8600 increased from 5lks to 9lks,what this telling to us,Bears give pressure
at 8600 LV to nifty go down.
Today MAX CHOI almost 10laks value ,nifty went down 8483 again go up and close at 8510 why?
because of the trend,
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trend up, buy signal in chart,MAX CHOI PE reaching or reached 10 laks value
one can expect big moves
trend down, sell signal in chart,MAX CHOI CE reaching or reached 10 laks value
one can expect big moves
Today-trend up, no sell signal in chart ,MAX CHOI CE increasing to 10 laks value,
see nifty for what happ, all the pressure given by Bears went to waste
