What is Open Interest?

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What is Open Interest? podcast

May 20, 2020

Technical analysis primarily revolves around studying the price action by tracking these 5 data points - open, high, low, close (OHLC), and volume.

These five data points are considered the most important for trading and analysis.

All other forms of data - such as moving averages, momentum indicators (e.g. RSI, MACD), and breadth indicators (e.g. advance-decline ratio) - are secondary in nature. They are derived from the 5 primary data points.

However, there is another important data point which is equally useful but is ignored by most. It is open interest.

In this video, I talk about open interest and why traders must use it in their analysis.

Apurva Sheth

Apurva Sheth (Research Analyst), Managing Editor, Fast Profit Report is our lead Chartist. And he is very passionate at that! A technical analyst with substantial experience, Apurva follows an integrated approach when it comes to his trading picks. He draws logic from different school of thoughts covering both classical and the contemporary techniques of technical analysis. He is a Chartered Market Technician (CMT) and a member of the Market Technician Association (USA). In the past, Apurva has helped banks, mutual funds, insurance companies and FII's among others make profits based on his recommendations. Apurva was also regular guest/contributor on Zee Business and The Economic Times. As part of the Daily Profit Hunter team, Apurva is focusing all his efforts on ensuring that you, his readers, regularly get access to actionable, and profitable, trading opinions. And he is doing this using his own proprietary process, which has been proven to work over the years.

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3 Responses to "What is Open Interest?"

kapilberera

Jun 1, 2020

sorry didn't understand . if open interest is rising in rising market . how do we ascertain the reversal is going to happen

Like 

DEEPAK VERMA

May 20, 2020

Good Input..

Like 

Pradeep

May 20, 2020

I don't know anything about it

Like (1)
  
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