A lot of #OpenInterest traders will look at the high #OI of today in Futures

The #Nifty F addition was 30458 contracts, a high for the series of Jan

The #Banknifty futures addition was 6265 contracts today, not a high but big.

A quick thread on why this is a half- truth.
The futures market of today is just a fraction of the Options market.

Any day the options market beats the Index Futures 100 times & easy.

So if you are only looking at Futures Open Interest , you are reading just 1/100 th of the market
The entire market is not just divided between 4 players

a) FII's
b) Pros's
c) Retail
d) DII's

but is also hedged completely

So a long F in NF is with a short call as a pair.
Another reason you should not focus only on Futures OI
Fii's trade a bigger time frame than Pros.

So if you are looking at next 1- 3 sessions look at what pros do.
The Above chart will show you that Pros are net long today at close whereas Fii's closed longs and added shorts, Retail is divided half and half almost and DII's don't trade much , but as mentioned previously that is just a half truth.

Stay with me will be clearer...
Here is a break-up of the options market of today

and as you can see Fii's added longs in calls
And Pros went short in calls

You see the hedge?
People extrapolate the data and justify all they want to see or like to see.

Truth is all these are super traders who trade a Friday to Thursday cycle. That's it . Nothing more

All these hedged and other positions are mostly closed on thursday.

How do we know?
See the reds every 5th day

That is settlement day

Notice there is a drop in Open Interest whch means previous positions are closing.

This happens every Thursday.

This is for Pros
This is for FII's

see the reds every thursday
and for retail
Long story short

The derivative market is fast & hedged

These people know what they do & trade in/ out quickly. You will never be able to guess what they do it by looking at data post 5 pm

Focus on your charts, It will tell you much much more about what the market can do next
My team works very hard to put all this data in place every evening.

You will find the charts I shared in the forum section of vtrender.com .

If you want a twitter alert when they are updated, follow @Vtrender on twitter

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More from @Am_Shai

Jan 24
as mentioned previously , have not been trading overnight positions and happy with all the volatility and the massive intra day swings.

This is excellent for trading .

For the swing, of interest to me is the lows in #Nifty of today right at the channel of importance at 16980
There hasn't been buying in the #Orderflow for quite a while.

Was watching 17700 earlier last week and that did not show any buying.

This is a snippet from our room
we traded with a negative bias below it all last week
Read 5 tweets
Jan 11
A lot of people watch the #SGX pre and post close , and I know whatsapp and telegram groups are always focussed on the #Sgxnifty moves post our close.

New guys think what happens on SGX gets carried to Nifty next day .

Misconception NO 1.
Most SGX traders are short term traders and capitalise and close gains within hours.

This is the reason you won't see a follow through at the open. They are fixated on the global front and if that changes they move out.

The added hours help them to do so.
You will see memes of a drunk woman at night and a sober lady in the morning for SGX justifying the moves which took place overnight :)

A little bit of fun does not hurt

Reality -Open opportunity was closed in huge profits by funds who show up next morning with big big smiles
Read 7 tweets
Jan 8
It's the weekend and time for a thread.

I would like to share my views on #Trading and #Investing.

I see a synergy in the 2, fully aware that there are radical and often polar opposite views for both trading and investing.
Most traders diss investors and most investors do not think kindly of traders.

Investors talk in terms of wealth creating and urge you to invest savings etc in investing. Those who do so end up with the "good life" at 65-70 with no friends to share the riches with.
Traders on the other hand are constantly working for that extra few percent every month.

You cannot be wealthy, till you can make money whilst you are sleeping also.

Leveraging creates wealth.
Read 20 tweets
Aug 28, 2021
It's the weekend & I'd like to share with you a money making strategy in the #MarketProfile approach to trading the markets

And No ! I won't ask you to grab a cup of coffee & read this

Weekends are for more than coffee :)

But do take notes. There is a definite edge in this
First and foremost, to all who are new to the #MarketProfile- (MP) is a robust system of trading which involves Price, Time + Volume- 3 parameters

All 3 together, hence a bigger edge to us as traders

You can start reading about the #MarketProfile at - vtrender.com/what-is-the-ma…
The strategy we are going to look at today is called the Initial Balance strategy

The name is important

What's in the name?

Lots! & the game too

The Initial Balance is the first 60 minutes of trading. Now you understand why we use the word Initial .

But Why 60 mins?
Read 17 tweets
Aug 26, 2021
#35500 call #dukaan

sl at 185 tgt 310
265 bookd half
#BNF #Orderflow was clean and long from the open.

My long view from 09.30 am
The entire trading room was long and no one picked shorts as #process was clean for us Image
Read 6 tweets
Mar 14, 2020
I work with candle sticks also. They are present in all my #Orderflow charts  and I have them plotted to the left of my charts .

This disclaimer to all who think I do not use candle sticks and bars.

I repeat they are present in all my charts, even my #Orderflow charts.
But for intra-day , if you are using 5 mins and 15 mins or even 30 mins and using them to make decisions, you are at a big disadvantage.

Allow me to explain. I'll take a few minutes
Candles give us the Open, High, Low ,Close. We call it OHLC.

- 4 parameters to make trading decisions out of.

Then the relation between the open and the close and the shape it gets decides

a) the color of the bar
b) Bullishness or bearishness

Would you agree?
Read 15 tweets

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