iCharts Discussions

[singh.ravee]

casper bhai,
thank u so much,
kindly give me this weekend to search for charts, which reflect my version of using OI.
regards
ravee

[casper]

[Ravi_S]

Casper please include me in the list as well..

[chiragbvyas]

short mahindra & mahindra for the target of 676 666 close below 666 wil take this stock to 633

[chiragbvyas]

short hcl tech with stoploss of 489 for the target up to 462 450 432

[singh.ravee]

casper,
i m attaching an excel sheet for reliance.

as a rule
price going down and OI increasing means, start of short build up, which is a bearish indication, big boys are bearish that why they are shorting like hell.

Here u will observe first three days, overall trend of price is down and OI is increasing. Hence we can expect a further down. If someone opens a short, see how he can be trapped immediately.

Thats why I dont use it in trading.

Case in point:
On 1 feb 2011 there is huge increase in OI and good fall in price. If one opens short he is ready to commit mistake.
Why I am saying so? Answer is If u look at last two candles of 1 feb 2011 in 60min, they are star in downtrend also a bullish divergence (which ravi spotted early). On 2 feb 2011 the first candle of the day completes the morning star pattern. I entered late on completion of morning star pattern and exited late.

Volume as pointed by sherbaaz is very useful. If u look at eod of reliance volume is continuosly falling. It gives one an idea that one is trading a pullback and this upmove is risky if fresh buying doesnot comes in.

This is how I used to utilise OI and used to fall mostly in traps. So I stopped using them.

Your valuable comments.

regards

ravee

P.S: Sherbaaz bhai, if possible for you, kindly initiate a thread on candlestick patterns.

[chiragbvyas]

mahindra and mahindar hammered also hcltech at near low of the day

[casper]

[casper]

[sherbaaz]

[quote="singh.ravee"]casper,
i m attaching an excel sheet for reliance.

as a rule
price going down and OI increasing means, start of short build up, which is a bearish indication, big boys are bearish that why they are shorting like hell.

Here u will observe first three days, overall trend of price is down and OI is increasing. Hence we can expect a further down. If someone opens a short, see how he can be trapped immediately.

Thats why I dont use it in trading.

Case in point:
On 1 feb 2011 there is huge increase in OI and good fall in price. If one opens short he is ready to commit mistake.
Why I am saying so? Answer is If u look at last two candles of 1 feb 2011 in 60min, they are star in downtrend also a bullish divergence (which ravi spotted early). On 2 feb 2011 the first candle of the day completes the morning star pattern. I entered late on completion of morning star pattern and exited late.

Volume as pointed by sherbaaz is very useful. If u look at eod of reliance volume is continuosly falling. It gives one an idea that one is trading a pullback and this upmove is risky if fresh buying doesnot comes in.

This is how I used to utilise OI and used to fall mostly in traps. So I stopped using them.

Your valuable comments.

regards

ravee

P.S: Sherbaaz bhai, if possible for you, kindly initiate a thread on candlestick patterns.[/quo

with OI and PRICE include the trend and try to see the overall picture of what is happening in the market or to be precise wht is happening on chart. I would never consider OI and price and trend interpretation on less than EOD chart.

for eg if i take the eod chart of nf current series following are my broader observations:

1) technically trend is DOWN.
2) yesterday we had a strong positive closing in nf
3) OI was negative for yesterday -172150.

now in a technically weak or bearish market with rise in price OI decreases means that shorting covering had happened.

lets change the scenario for the sake of eg if yesterday positive closing had happened along with positive change in OI means new long had been initiated means some trend reversal signals were there. Once thing thing you know start looking for bullish signals if any are there as per yr system/methods. if any you found try to long NF rather than short.

Regards,

Opening a thread on a subject is a big responsibility as one need to devote time to keep updating and discussing the things, which for me is a big task. I dont want to start something and than dont participate in it.
Will try something

Regards,

[casper]

so finally i am back with my reply

at first i will acknowledge that yesterday what i wrote about nifty is wrong,as i checked in "stock watch" segment of nse and generated quote of nifty, where the change in OI was in positive number, so i concluded that it was a long build up case, but today, being shocked by the sudden fall of nifty due to - div in lesser tf which it was carrying from yesterday 1.30 pm onwards, as i checked the "historical price" segment, i discovered nifty OI is given in negative number, so it was a short covering rally indeed

and as i have mentioned that as long as we hold the support, we wont go down, now our support was 5480, if we close above that then we will be able to go up again

nifty chart in lesser tf is already showing + div, lets see how and when what happens here



lets me jump to reliance OI case,

i have analysed the one month data from nse and posting my findings here for further discussions

i have started analysis for 5th jan to 3rd feb and will post here day be day data with my silly comments!!


1. 1st meaningful fall came on 7th jan, price went down 20rs, OI increased 45250, short build up

2.10th jan, price gone down 34 rupees, OI increased 32750, short build up

3.11th jan price decreased 11rupees , OI increased 39000, short build up

4.12th jan, price increased 7 rupees, oi increased 28250, but this is not long build up, ask me why?

u have overwhelming shorts already made, without covering them, can u go long? if not, then where is the sign of short covering so far?

in fact, it was a case of sell on rise where, in spite of price hike, some body shorted

5.13th jan, price is down by 17 rupees, oi increased 50250, short short, short

6.14th jan, price went down by 14 rupees, OI increased 63250, short again


7.17th jan, price went up 2 rupees, oi increased 118000, again this is not long build up, bcoz still there is no sign of short covering, so again some body hammered it

8.18th jan price down by 5 rupees, OI increased 13500, again short

9.19th jan, price down 18 rupees, oi increased 365750, short again

10.20th jan, price down 6 rupees, OI increased 1348000, short build up

11.21st jan, price up 12 rupees. oi increased 996500, as there is no sign of short covering so its again can not be a true long build up, so its again sell on rise

12.24th jan, price down 18, oi increased 2521750, huge short build up

13.25th jan, price down 16 rupees, oi increased 4200500, huge short

14.27 th jan price down 21, oi up 5428500, heavy short

15.28th jan, price down 24 rupees but oi up only 881750. not so whole hearted short this day, may be down move is drying up

16.31st jan, price up by 16, oi increased 38250, again i dont think its long build up, bcoz still now no sign of short covering, how can one go long when he has existing shorts?, according to me, trend is still down and some body shorted on rise


17.1st feb, price gone down 29 rupees, oi increased 489500, short build up

18.2nd feb, price up 14 rupees, oi decreased (1st time) by -1140500, starting of short covering

19.3rd feb , price up 22 rupees, oi decreased by -419500, short covering going on


price is hiking purely on short covering

comments are welcome, i am not always right, plz correct me if any thing is wrong here

[singh.ravee]

Sherbaaz hi,

In the morning you were facing problem to upload a file which u wish to share with all. I think now system is working fine. I did with the same later in the day.

I request you to kindly upload the file as and when possible.

I am sure its going to be of great use.

Regards

Ravee

[chetan83]

[sherbaaz]

[singh.ravee]

may be u can copy paste the contents