What is the Open Interest indicator on FYERS Charts, how does it work, and can it be customised?
The Open Interest (OI) Indicator on FYERS charts is a key technical tool used primarily in futures and options trading. It reflects the total number of open contracts that remain unsettled, helping traders measure market participation and trend strength. It offers a simple, visual way to assess whether positions are being added or closed, providing context for potential price trends.
Note: OI applies to derivatives (futures & options) contracts. If you don’t see OI for a symbol, confirm you’re viewing a derivatives contract/series rather than the cash/spot symbol.
What does the OI indicator show?
- Active positions: Open Interest represents the number of contracts that are open but not yet closed or settled.
- Different from Volume: Volume counts the number of contracts traded during the day; OI tracks how many remain open.
- Cumulative behavior: OI updates as new contracts are created or closed, making it useful for tracking participation over time.
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: The current Open Interest value, updating as contracts are added or closed.
- Black line: The 20-period Moving Average (MA) of OI (SMA by default), smoothing short-term fluctuations to highlight the broader trend.
Comparing the real-time OI line with its MA helps differentiate short-term spikes from sustained participation.
Why it matters for traders
- Insight into participation: Rising OI generally indicates increased trader activity and interest.
- Trend validation: OI rising with price can support trend strength; falling OI during price moves can suggest weakening momentum.
- Market sentiment: Sustained increases in both OI and price often point to bullish sentiment; falling OI with price declines can suggest bearish conditions.
- Line context: A rising OI above its MA may signal strong participation and trend confirmation; OI below its MA may indicate cooling interest.
Note: Around expiries/rollovers, structural changes can cause sudden OI shifts. Always interpret OI alongside price and volume.
Customisation options for the OI indicator
How to customise the OI indicator on FYERS?
- Log in to FYERS Web or Mobile.
- Open a chart for any Futures or Options instrument.
- Click on the Indicators icon (chart toolbar).
- Search for and select Open Interest.
In the settings popup:
- Choose the MA Type (SMA or EMA).
- Adjust the MA Length to your preferred value.
- Click Apply to see changes reflected instantly.
Notes
- Longer periods (like 50 or 100) smooth out noise and are better for long-term analysis.
- Shorter periods (like 10 or 14) make the OI indicator more sensitive for short-term trades.
- You can remove or reset the indicator anytime via the chart’s indicator settings panel.
What if...
| Condition | Resolution / Implication |
|---|
| OI is rising while price moves up | Bullish trend confirmation |
| OI is falling while price rises | Possible short covering or weak uptrend |
| OI is flat with large price moves | May indicate lack of conviction or liquidity |
| Price falls while OI rises | Fresh short build-up; can strengthen a downtrend |
| Price rises while OI declines | Short covering; rallies may fade if OI doesn’t rebuild |
| Only one line (blue) is visible | The OI MA (black) may be disabled or configured to the same value; enable MA or adjust its period |
| OI appears flat despite market movement | Market could be consolidating; wait for OI and price to realign with direction |
| Blue line spikes but price doesn’t move | Watch for a breakout or a false build-up; confirm with price/volume |
OI doesn’t reset daily like volume; the dual-line view (OI and its MA) and custom settings help separate short-term noise from sustained positioning.
Last updated: 05 Dec 2025
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