Built-up Breadth: Read Market Sentiment Before You Trade

Hello everyone, welcome to Quantsapp. In today's video we will be learning about Built-up Breadth, a tool that works flawlessly whenever you are going to trade. So it will tell you about the market sentiment; it doesn't matter if you are an intraday trader or a swing trader. So before starting the topic, if you are new here, you can go to the description; there's a link below with the help of which you can download and install the Quantsapp web application. After successful registration you will get some free tools in the application, and alongside there is a Video Library. So in the Video Library you will get multiple videos that will help you out, okay, in your trading. These videos are based on Pro Plus tools as well as on various strategies and are available in multiple languages as well, so you can watch them in your meantime. Now, at any point of time, if you guys are having any kind of doubts or queries, you can directly go here to the Profile section; in Support you will get our contact number as well as email ID, so you can contact us and we will be there to sort your queries out. Let's start today's topic. The topic for today is Built-up Breadth, okay. So we will be talking about Built-up Breadth. Now, when we are talking about Built-up Breadth, okay, so usually it helps us to determine the market sentiment, okay. Built-up Breadth, like, what are the sentiments of the market currently? If the market is in bullish sentiment, or if the market is in neutral

sentiment or in bearish sentiment, you will get to know that, okay. Now, when we are looking into the Built-up Breadth, okay, there will be four things that you have to analyze there. First of all, it is basically a relation between, you can say, the open interest and the price, okay. So the open interest we are analyzing here is not the options open interest but the futures open interest, okay. So we are taking that, okay. Now, the relationship is that, first of all, if I'm going to take the open interest, so obviously, as I have told you, it will be of futures OI, okay, and we will be relating the futures OI with the price, okay. So we will be relating the futures OI with the price. So we have covered this topic, the relationship between the open interest and price, in many videos, okay, so I'm just revising it again. So the open interest and the price, okay. Now, at any point of time, if my open interest is increasing, okay, it means the participants are increasing in the market, okay, and with that the price is also increasing, and with that the price of a particular stock or index is also increasing, it means the market currently is in the bullish sentiment, or there is a long position, you can say, okay. There is a long position, you can say, okay. Now this can be used for the bullish trades, you can say, okay. Now, if my open interest, if my open interest is

decreasing at any point of time and my price is still increasing, okay, my price is still increasing, it means the market currently is in short covering, okay. So the market is in short covering, you can say, okay. Now, if my market is in long position, somehow it will be moving somehow like this, okay, somehow like this, so it is in the bullish direction. When my market is in short covering, it means the market was falling for a long time and now there is, you can say, there is a recovery, okay. So there may be profit booking of the sellers as well, okay. So it is, you can say, it is a temporary upward trend, okay. This is a temporary upward trend, temporary upward trend, okay, okay. Now, the third thing is that if my open interest, if my open interest is again increasing, and at the same time, at the same time, my price is decreasing, right, it means if my price is falling, it means the sellers are responsible for it, okay, and the participation of those sellers is increasing in the market, because my OI is increasing, right? So it will denote to me the market is on the short side, or there is a narration of short, okay. So the market will be falling, you can say. Okay, so the market will be falling here, right. So this is the third condition. Now, the fourth and the final one is that if my

OI, if my open interest is decreasing, okay, and at the same time my price is also, you can say, my price is also decreasing, okay, so this is the fourth condition. Now, open interest is decreasing, price is decreasing, so if my price is falling, it means the sellers are responsible for it, right, and you can see the participation of those sellers, okay, so it is also decreasing in the market. So it means currently the market is on the downside, but it is a temporary trend, because the participants are not supporting it, okay. So your market will be somehow like this: your market would be moving in the upward direction and now there is a downward trend because my price is falling. So this is a temporary, this is a temporary downward trend, you can say, okay, a temporary downward trend, you can say, okay. So the first one is the long position, okay; that will denote the bullish sentiment, the first one. The third one is the short; that will clearly denote the market is in bearish sentiment, okay. Now, at any point of time, if the market is in long position as well as it is being supported by the short covering, it is being supported by the short covering, that will give me a good, a strong sentiment that the market can now, you can say, move further in the up direction, right. Similarly, if there are the sentiments of short, as well as the market is also showing you, the market is

also showing you the long unwinding, okay. So the fourth condition is the long unwinding, okay. Now, if the market is showing you the short sentiment, and along with it the long unwinding is also increasing, it means the market is clearly showing you a strong sentiment that the market will fall, or there will be movement in the downward direction, okay. So I hope the relationship is clear between the open interest and, you can say, the price, and this is what we call the built-up of the market, right. Okay, now we will use this built-up, okay, to know the sentiments of the market, and for that we have an amazing tool in Quantsapp that is known as Built-up Breadth, okay. So you have to open the Quantsapp application; in the Track section there is the first one, okay, so that is the first one, Built-up Breadth. So you have to open it. Now you can see there are certain colours, okay, so I'll tell you what these colours actually denote. So first of all, just a second, okay, so first of all I am looking here, okay. So first of all, you can see the green colour is there, okay, green colour is there, so the green colour is denoting to you the long position, okay. Similarly, the blue colour is denoting to you the long unwinding, okay, that we have discussed before. Similarly, the red colour is denoting to you the short position in the market, the bearish sentiment, and along

with it there is short covering being denoted by the yellow colour; that will give you short covering sentiments in the market, okay. Now you can see currently I am analyzing All; it means I'm analyzing the overall market, okay, here. Similarly, if you are trading in Nifty, BankNifty, or you are trading with the stocks of Nifty and BankNifty, you have an option here; you can change it to Nifty, BankNifty and FinNifty as well, okay. So it will tell you the sentiments of, particularly, BankNifty or stocks from BankNifty. Similarly, if you will choose Nifty, it will give you the sentiments of Nifty as well as the stocks of Nifty, okay. And then we have a time frame, so you can analyze the Built-up Breadth of the market, or the sentiments of the market, in an intraday perspective as well, or for the long perspective, or you can say for the swing perspective as well, okay. So you can change the time frame from here. So for example, if I'm going for an intraday trade, okay, I can choose the 5-minute time frame as well, right. So you can see, in the current market, in today's live market, my market started from here, and when my market started, you can see clearly, at this point of time, I can see approximately 115 stocks were on the short side, okay. Along with it, I can see 12 stocks were in long unwinding; it means there was a short-term downward trend in 12 stocks, okay, and 78

stocks were in the long position, okay. After that I can see, when, you can say, the market was on the short side, but I can see here my market started giving me a yellow colour and it was increasing; it means the market is giving me a short covering, okay. So those stocks which were in the downward direction, which were falling, now they are covering from their trend, okay, from their downward trend. And we can see as well, from 9:30 the green colour increased from here. So it means now we have 64 stocks in long unwinding, and then approximately at 9:55 I can see 107 stocks in the long position, and if I'm getting this data, along with it I can see my short covering is also increasing. So it is giving me the sentiment that the market can be in the bullish direction, and I have to make the trade in, you can say, the stocks which were giving me a positive sentiment in the market, right. So currently, let's see what the current situation of the market is. So I can see in the current market, approximately at 12:00 p.m., so currently it is 12, 12:00 p.m., and at 12:00 p.m. I can see 122 stocks are giving me a narration of long, okay. Along with it, 15 stocks are in short covering, that is greater than the long unwinding, and I can see, if I'll compare the long positions with the short

positions, there is a huge difference, right. So clearly the sentiments of the market are on the bullish side, okay. So what will I do now? Now, if I'm trading intraday and the sentiment of the market is bullish, I have seen it in the Built-up Breadth, now I will go and I'll choose the stocks, because the probability, the probability that you will choose a stock, okay, from 122 is, you can say, greater than selecting the stocks from these 78, right. So what I will do, I will go with the stocks that are giving me a bullish sentiment, okay. So for that I'll again go here to the Track section, in the Track section, and in the Track section we have Built-up Scrip Symbol, okay. Now I just have to select the expiry date and the narration. So from the narration I'll select long position; in the expiry date I'll choose the December expiry, so that is 26th December. So I will choose 26 December here, and you can see these are all the stocks that are giving me a long narration, a positive sentiment, sentiment in the market, right. Okay, now we have so many stocks, so now I have to sort them out. I, I, I cannot trade in so many stocks, okay. So what do I want? I want two or three best stocks out of them, okay. So for that I will just arrange my open interest, because I want the number of

participants to be good in a particular stock, right. So for that I'll just arrange my open interest in descending order. So you can see the maximum open interest that is built up is, you can say, in CDSL and in Loa, then in VBL, in Adani Green as well, okay. So I will go with these types of stocks, and with this you can see there is an increase in price of 3.48%, approximately a 4% increase in the price in the first one. So what I will do, I will go with the second stock, in which I'm getting 1.67%, so there is a good chance that this stock can again go in the upward direction, okay, because it has just given me, you can say, a return of approximately 1.5%, okay. So there are chances that it will go in the positive direction, or it can give me a good upward movement as well in the market, right. So let's see, this is CDSL, and we will just open its chart here, okay. So CDSL, we will analyze it in 5 minutes again, okay, because we are going for intraday, okay. You can see, you can see the market started here, so approximately this was the candle from where my market started, it is 9:15, okay, and then at 9:15 the high of the previous day was approximately, you can see, 1,674, okay. And here my market also broke that

previous day high, and after that it gave me a very good move in the market, right. Currently my market gave me a downward direction; it is giving me a downward direction for the last 20 to 25 minutes, okay. But you can see, you can see the high of the previous day is still not broken, okay. So it was acting as a resistance in the previous market, okay, but now it can act as a support, and you can see the market is also giving me a reversal from that exact point, right. So this is the point where I can take entry in my trade, okay. Now there is one more thing that you have to analyze to take a perfect entry, you can say, or to find the perfect candle in which you can make your entry. So for that, what can you use? You can use the order book data, okay. Now, in the order book we have buyer and seller initiated quantity. I'll make it so easy for you. So what you have to do: if you are currently at the support and if you want to make a trade in the reversal direction, you are going for the buying side, okay. So what you have to do, you just want the buyer initiated quantity to be greater than your seller initiated quantity, okay. So currently my market is at support, so on any candle, if I'll get the buyer initiated quantity approximately two times greater than the seller initiated quantity, that will be the candle; I'll mark the high of that candle, and that will act as my entry point, okay. So let's see which is the candle that is giving me that exact

trading. So currently I can see on this candle, that is of 11:50, the buyer initiated is 5,000 approximately and the seller is 8,000. So currently I'm not getting any candle in which my buyer initiated quantity is greater, or more than two times, okay. Let's see the next candle, so the 11:55 candle. Yes, I'm not getting it again, and in this one candle that is currently forming here, approximately of 12:00 p.m., so currently in this candle as well I'm not getting good buyer initiated quantity, okay. So now, at any point of time, if there will be any candle that will form here, because currently my market is at support, and it will give me a good buyer initiated quantity, approximately two times the seller one, okay, so that will be the candle. What will I do? So suppose this is the candle that is giving me a good BQ, okay, so I will just mark the high of that candle and that will be my entry point. Suppose the high of that candle is 240, just for the example, okay. So now, at any point of time, if my market will break this 240, that will be my entry point, and I'll take my trade on this very particular candle, right. Now, for the stop-loss, what you have to do: so this was my, this was my resistance, which was acting as a resistance; currently it is acting as my support, so that support will be my stop-loss, okay. Suppose the resistance

or the support is at approximately 230, you can say, okay. So what I will do, I will take some leverage here and I will just place my stop-loss at 228, right. So this is how you have to take the entry; this is how you have to place your stop-loss, okay. And for the target, you can just make your target the very close resistance. So approximately I can see this is my resistance from where my market was taking resistance, so this can be my target, okay. This can be my target. Now, if I'm trading with 10 lots, I will book 8 lots here, and then, out of these two, so from the remaining two lots, I will just trail my stop-loss, okay. So this is how you have to take the entry when you are going to take a trade with the particular stock that you have chosen, okay. But the main concept was to know the market sentiment, okay, with the help of Built-up Breadth, and I hope you got the concept clear. The video, you can just like it; you can share it with your friends as well. Make sure to share your views in the comment section. Thank you so much. This is your Singh. Have a good day.