Adding an Open Interest (OI) indicator to a Power Scalper chart (for both spot and call/put options) can significantly improve trading decisions.
Key Benefits:
-
Trend Confirmation
Rising price + rising OI = strong trend (buyers are building positions)
Falling price + rising OI = strong downtrend (short buildup) -
Identify Smart Money Activity
Sudden spikes in OI indicate institutional participation, helping traders follow “smart money” instead of retail noise. -
Better Entry & Exit Timing
OI changes help confirm breakouts and avoid false signals, improving scalping accuracy. -
Options Sentiment Clarity (Call/Put Charts)
-
Increasing Call OI → Resistance likely
-
Increasing Put OI → Support likely
Helps in identifying key levels for intraday trades.
-
-
Detect Trend Reversal Early
Price moving but OI decreasing → trend losing strength (possible reversal or short covering).
In Short:
Adding OI to the Power Scalper chart enhances confidence, precision, and decision-making speed—especially for intraday and options traders.
