Variable List Abbreviation: PosOpnIntIndex
Variable Mode(s): Standard and Futures1
[ Note: appears in indicator list only after open interest selected ]
Parameter(s): PosOpnIntIndex time periods
The sum of the fraction change in price during time periods of increasing open interest. The trend indicates whether prices are increasing of decreasing during time periods of increasing 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 unwise investor is buying or selling.
Running total over n (time periods) time periods of
(close - previous close) / previous close
for open interest up time periods.