OI and my retardation
A day ago I quit a good trade because of the OI. Now, I will use it differently than usual.
What does bum trash Investopedia is telling us :
Rising OI - Price UP - Market is strong
Falling OI - Price UP - Market is weak
Rising OI - Price down - market is weak
Falling OI - Price down - Strong
Far from being the truth. It also doest tell us shit about consolidation.
OI is a sentiment measurement
1. OI in consolidation with a trend - the trend will continue if OI is rising in consolidation. It makes sense, both shorts and longs are entering.
2. Once it dropped to its consolidation levels, it may signal a top. But not straight away.
3. Most of the times it doest predicts tops and bottoms
4. It has its support/resistance
5. OI divergence may work
6. Based on this OI, who would you say is buying in consolidation? Retails, right! But its clearly not the uptrend. OI is fuel for a move.
7. It may tell you where are underwater positions.
OI is can tell you who is out, who is in and if they are getting crazy or not. It;s sentiment but also may tell you about position of trapped traders and all of those who exited the market. Do not use rules from textboks. DYOR
What does bum trash Investopedia is telling us :
Rising OI - Price UP - Market is strong
Falling OI - Price UP - Market is weak
Rising OI - Price down - market is weak
Falling OI - Price down - Strong
Far from being the truth. It also doest tell us shit about consolidation.
OI is a sentiment measurement
1. OI in consolidation with a trend - the trend will continue if OI is rising in consolidation. It makes sense, both shorts and longs are entering.
2. Once it dropped to its consolidation levels, it may signal a top. But not straight away.
3. Most of the times it doest predicts tops and bottoms
4. It has its support/resistance
5. OI divergence may work
6. Based on this OI, who would you say is buying in consolidation? Retails, right! But its clearly not the uptrend. OI is fuel for a move.
7. It may tell you where are underwater positions.
OI is can tell you who is out, who is in and if they are getting crazy or not. It;s sentiment but also may tell you about position of trapped traders and all of those who exited the market. Do not use rules from textboks. DYOR
Note
See, you had big downtrend - consolidation and OI is dropping in consolidation - reversal
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.