Positional Trading Strategy - Using Price-OI-Percentile
Price-OI Percentile Breakouts refer to using the combination of price movements and Open Interest (OI) percentiles to identify and confirm breakout opportunities in the market. A breakout occurs when the price moves beyond a significant support or resistance level, signaling the potential for a strong price move. By analyzing the OI percentile, which ranks current open interest against historical levels, traders can gauge the strength and sustainability of a breakout. High OI percentiles indicate strong market participation, supporting the breakout direction, while low OI percentiles may suggest weak interest, signaling a potential false breakout. This method helps traders make more informed decisions about the validity and strength of breakout trends.
PGDM in finance, having 5+ experience in Equity, commodities , forex analysis and trading.
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