How does the Open Interest indicator work on FYERS charts?
The Open Interest (OI) Indicator on FYERS charts helps visualise the strength and direction of market activity in the derivatives segment. It offers a simple yet powerful way to assess whether new positions are being added or closed, providing insights into potential price trends.
Understanding the OI indicator lines on FYERS
When you enable the Open Interest Indicator on a FYERS chart, you’ll see two distinct lines:
- Blue line: This shows the current Open Interest value, updated in real-time as new contracts are added or closed.
- Black line: This represents the 20-period Simple Moving Average (SMA) of the OI values. It helps smooth out short-term fluctuations to highlight the longer-term trend.
These visual components let traders compare real-time shifts in open contracts with the broader trend, enhancing the accuracy of their technical analysis.
How it helps traders?
- Trend strength: A rising OI above its SMA may signal strong participation and trend confirmation.
- Potential reversals: If OI begins to fall while price rises, it might indicate weakening interest or profit-booking.
- Market sentiment: Sustained increases in both OI and price typically point to bullish sentiment, while falling OI with price declines suggests bearish conditions.
What if...
| Condition | Resolution |
|---|
| Only one line (blue) is visible | SMA may be disabled or set to same value |
| OI appears flat despite market movement | Market could be in consolidation phase |
| Blue line spikes but price doesn’t move | Watch for a breakout or false buildup |
The dual-line setup of the OI indicator helps you distinguish between short-term fluctuations and long-term positioning trends.
Last updated: 30 Jun 2025