Positive Put+Call Open Interest Index

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Positive Put+Call Open Interest Index

Variable List Abbreviation: PosPt+ClOpnIntIndex

 

Variable Mode(s): Futures2

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

 

Parameter(s): PosPt+ClOpnIntIndex time periods

 

Description:

The sum of the fraction change in price during time periods of increasing put & call open interest.  The trend indicates whether prices are increasing of decreasing during time periods of increasing put & call 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.

 

Calculation:

                            Running total over n (time periods) time periods of

                                            (close - previous close) / previous close

                            for put & call open interest sum up time periods.