Hi, Does anyone here use OI data - Long buildup, short buildup etc to setup swing trades? if yes how? Have you tested it?
Are you talking about OI and build ups in index or individual stocks?
I used to but completely out of it now as long buildup can be long unwinding anytime , for swing trades it is completely bad , if anyone will say it is profitable means either he is lying or got some lucky OR due to technical.
Suppose price is up by 5% and OI change is +100 which is long buildup but if same price is down from 5% to 2.5% in the day and OI change becomes 80 or 140 it will still show long buildup. But clear you can see on top its down by 2.5% with increase in OI of 40 which is short buildup or decrease in OI of 20 which is long unwinding but overall you will se price increased 2.5% with OI increase 80/140 which is long buildup. So I will not suggest trade with OI.
So you are saying it is not reliable, we cannot depend on it. Can you tell about anything which is dependable according to you?
It will be consistency as you will be able to know how price move in particular asset and another thing would be supply and demand/order block.
Time and Sales data is a good place to start looking.
Have you tested them? What did you think?
I remember looking at buildups of individual stocks, but did not took trades. I will check again.