How to use Open Interest in trading
Hi there!
My name is Michael, today I want to share with you basics of vision that I use in my trading to understand price movement logic. It is based on VSA methodology, change of open interest and Delta.
Basically all you need to know is that there are a couple of signals, others are related with them:
"Buys"-->"Test of Buys"-->"Forcing through Buys"-->"Test of Forcing"
"Sells"-->"Test of Sells"-->"Consumption of Sells"-->"Test of Consumption"
Every Buys or Sells sooner or later will be tested aswell as a Forcing or Consumption.
To understand whether there were buys or sells in bar you need to look at OI and Delta. Rising OI(green) tells us that positions were opened? that's the signal, it means that it would be tested. Color of Delta tells us whether it buys or sells.
Wish you good trades! May the Force be with you!
My name is Michael, today I want to share with you basics of vision that I use in my trading to understand price movement logic. It is based on VSA methodology, change of open interest and Delta.
Basically all you need to know is that there are a couple of signals, others are related with them:
"Buys"-->"Test of Buys"-->"Forcing through Buys"-->"Test of Forcing"
"Sells"-->"Test of Sells"-->"Consumption of Sells"-->"Test of Consumption"
Every Buys or Sells sooner or later will be tested aswell as a Forcing or Consumption.
To understand whether there were buys or sells in bar you need to look at OI and Delta. Rising OI(green) tells us that positions were opened? that's the signal, it means that it would be tested. Color of Delta tells us whether it buys or sells.
Wish you good trades! May the Force be with you!
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