A few years back, I was so confused to relate "Volume" with "Price" and every time my prediction went wrong.

Later I discovered my own "Prime-Volume" relationship logic, and all the confusions dissolved.

Read the post to know that

Breakout Scanner listed many charts today!

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(Link is given inside the article) https://t.co/CNMGIPbK5S

Bhav Bhagwan Hai (Price is God)

Lekin Open Interest (OI) Bhagwan ka Baap Hai (OI is Father of God)

This is what some traders claim about Open Interest (OI)😄

Is it True or Not?

Check These Features about OI & Decide Yourself!

Thread 🧵

#openinterest #OI
(1/N)

Check the ZEEL OI Change Chart as of 22/Sep/2022

There was a huge spike in 270 Puts (PE).

It means people sold 270 PE anticipating the price would not close below 270 before this month's expiry.

But the closing price of ZEEL on the next day (23/Sep) is 260.95.

(2/N)

Now can you imagine the conditions of these 270 PE sellers?

They have trapped - Either they have to book a huge loss or shift their position (it brings more risk to the table).

On 23/Sep, most people closed their position in 270 PE.

(3/N)

Also, many traders sold 270 CE, which adds more pressure to the fall.

270 PE opened at 6.9 and closed at 13.5 (close to 100% losses for options sellers) on 23/Sep.

(4/N)

Open Interest (OI) provides all this information (and many more).

What is Open Interest (OI)?

OI is the total number of outstanding derivative contracts (both futures and options) that have not been settled (still open).

(5/N)

VOLUME is the ultimate Trading cheat code.

But, most people never use it in the right way – because no one ever taught them how.

Here are 10 psychological triggers to knowing Volume in a better way :

Traditional idea of Volume:

- if the price increases with an increase in volume, it is BULLISH
- If the price is increasing without volume, it is BEARISH
- if the price is falling with an increase in volume, it is BEARISH
- if the price is falling without volume, it is BULLISH

But this doesn't hold good every time!

Let's look at some examples.

Ex #1: Tata Consumer (Daily Chart)

Here the price has gone upside from 640 to 780 without any increase in the volume!

Ex #2: Axis Bank (Daily Charts)

Here the price has gone up from 420 to 580 without much increase in the volume.

Do you think it can happen only in an uptrend?

Look at these charts!

Ex #3: Reliance (Daily chart)

Reliance fell from 1620 to 1300 without an increase in volume!

Getting many questions related to Breakout Trading.

Hence thought to share all the info in one place:

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Breakout Trading Screener - https://t.co/3teN7Jtuyk

Steps to use the screener -