Negative Put Open Interest Index

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Negative Put Open Interest Index

Variable List Abbreviation: NegPutOpnIntIndex

 

Variable Mode(s): Futures2

[ Note: appears in indicator list only after put open interest selected ]

 

Parameter(s): NegPutOpnIntIndex time periods

 

Description:

The sum of the fraction change in price during time periods of decreasing put open interest.  The trend indicates whether prices are increasing of decreasing during time periods of decreasing put open interest.  In theory the wise investors trade during time periods of declining activity, while the unwise investors trade during time periods of increasing activity.  Thus the trend should in theory indicate whether the wise investor is buying or selling.

 

Calculation:

                            Running total over n (time periods) time periods of

                                            (close - previous close) / previous close

                            for put open interest down time periods.