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    Manjula Ravikumar
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    The document discusses various indicators and how they relate to trader perception and market trends. It examines the relationship between call premium, put premium, and strike prices and how that indicates market movement. It then analyzes how changes in price, open interest, and volume relate to bullish or bearish sentiment and the strength or weakness of trends. Combining these factors can provide insight into whether trends are strengthening or weakening, and if reversals may be upcoming.

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    The document discusses various indicators and how they relate to trader perception and market trends. It examines the relationship between call premium, put premium, and strike prices and how that indicates market movement. It then analyzes how changes in price, open interest, and volume relate to bullish or bearish sentiment and the strength or weakness of trends. Combining these factors can provide insight into whether trends are strengthening or weakening, and if reversals may be upcoming.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    7 views60 pages

    Options Course

    Uploaded by

    Manjula Ravikumar
    The document discusses various indicators and how they relate to trader perception and market trends. It examines the relationship between call premium, put premium, and strike prices and how that indicates market movement. It then analyzes how changes in price, open interest, and volume relate to bullish or bearish sentiment and the strength or weakness of trends. Combining these factors can provide insight into whether trends are strengthening or weakening, and if reversals may be upcoming.

    Copyright:

    © All Rights Reserved
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    of 60

    CE PE Interpretation

    10 10 Low Moves, No Participation in Strike Price


    20 20 Active Strike Prices
    30 20 Call Side Goes Up & Down, Put Side will have Steady Move
    20 30 Put Side Move Goes Up & Down, Call side wil have Steady Move
    >40 >40 Extremely Dangerous to Trade
    Price OI Traders Perception

    Increase Increase Long Buildup – Most of the Traders are in Long Trade

    Decrease Decrease Long Unwinding – Long Trade Position are Booking Profits

    Decrease Increase Short Buildup – Most of the Traders are in Short Side

    Increase Decrease Short Covering – Short Trades are Booking Profits


    Price Volume Traders Perception

    Increase Increase Bullish

    Increase Decrease Bullish Trend Going to End, Reversal Possible

    Decrease Increase Bearish

    Increase Decrease Bearish Trend Going to End, Expect Reversal


    Price Volume OI Traders Perception

    Increase Increase Increase Trend is Strong on Bullish Side & may Continue

    Increase Decrease Decrease Uptrend is Getting Weaker, Looking Strength for Reversal

    Decrease Increase Increase Trend is Strong on Bearish Side & May Continue

    Decrease Decrease Decrease Downtrend is Getting Weaker, Looking Strength for Reversal

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