When price action says it is bearish and will fall futher but OI says it is at support level, which signal takes precedence here. Kindly share your experiences.
None. Prices move based on demand and supply that’s it everything else is BS.
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So these demand and supply zones, are they based on OI or Price Action?
They are only based on sentiment if there is a some positive news about a company people will run to buy it and vice versa. Sentiments can change within seconds.
But I think we won’t get postive or negative news everyday for every company, so the price need some basis to move and I believe the OI plays a major role. The price movement is nothing but price action. But my question is when we get conflicting signals from both OI & Price Action, which one to be considered?
Both are important…
Price action tell us what is happening in the stock at that moment because it factors in everything …
And if the OI is based on options chain… Oi mainly tells us the sentiment up to a certain date in the near future…