Built up Breadth: Gauge changes in Market Sentiment
Built-up breadth, as the name suggests, this study involves examining the current state of built-up positions in market securities, especially those listed in the NSE derivatives segment. It can be observed at specific intervals, such as every 1, 3, 5, or 10 minutes, as selected from the tool's drop-down menu. It is used to primarily gauge the sentiment governing the financial market.
Analysis of Futures Price and Open Interest, being labelled with 4 different labels, as shown ahead:
Longs = Price Up + OI Up (L)
Long Unwinding = Price Down + OI Down (LU)
Shorts = Price Down + OI Up (S)
Short Covering = Price Up + OI Down (SC)
So derivative data on NSE can be deployed to understand the sentiment and hence price forecasts and guesstimates can be arrived at. Option Traders can easily gauge the participants’ sentiments using Built-up Breadth in Quantsapp. Open Interest & Change in Futures OI help to decipher Market Participants' reaction to any move or event.
What you’ll learn
He has been a programmer himself in 10+ programming languages. With 20+ years of professional experience in Research & Advisory he has also been one of the pioneers of ROBO advisory in Indian Market. He is a known face on business media for his take on markets and trading strategies
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