Rule 6: In the CHG in OI, what if we get Negative values? What signals does it give?
If we get the Negative values in "CE", that means Market makers (BEARS) are squaring off the Call Positions (The SHORT Positions). So heavy squaring off in CE is a BULLISH signal and we have to expect a BREAKOUT if there is a sudden spike in the squaring volume. There is a panic situation. Normally this will happen all of a sudden in say 10-20 minutes and we have to exit the Shorts immediately and can GO LONG.
It is the Vice versa if we get Huge Negative Values in "PE".
If we get Negative Values both in PE and CE, then blindly SELL the OI pair
Small negative values indicate the normal profit booking.
If we get the Negative values in "CE", that means Market makers (BEARS) are squaring off the Call Positions (The SHORT Positions). So heavy squaring off in CE is a BULLISH signal and we have to expect a BREAKOUT if there is a sudden spike in the squaring volume. There is a panic situation. Normally this will happen all of a sudden in say 10-20 minutes and we have to exit the Shorts immediately and can GO LONG.
It is the Vice versa if we get Huge Negative Values in "PE".
If we get Negative Values both in PE and CE, then blindly SELL the OI pair
Small negative values indicate the normal profit booking.
Last edited: