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Technical
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| Open Interest |
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The total number of
outstanding or unliquidated contracts at the end of contracts at
the end of the day. Open interest represents the total number of
outstanding longs or shorts in the market, not the sum of both.
Open interest has very definite seasonal tendencies that should be
taken into consideration.
1.)
Rising open interest in an uptrend is bullish.
2.)
Declining open interest in an uptrend is bearish.
3.)
Rising open interest in a downtrend is bearish.
4.)
Declining open interest in a downtrend is bullish. |
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Oscillators |
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The oscillator is extremely useful in non trending markets where prices
fluctuate in a horizontal price band, or trading range, creating a market
situation where most trend following systems simply dont work that well. Most
oscillators look very much alike. They are plotted along the bottom of the daily
price chart and resemble a flat horizontal bond. The oscillator band is
basically flat while prices may be trading up, down, sideways. However, the
peaks and troughs in the oscillator coincide with the peaks and troughs on the
price chart. Some oscillators have a midpoint value that divides the horizontal
range into two halves- an upper and a lower. This mid-point line is usually a
zero line.
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Options
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An option contract gives us the right to buy or sell something at a set price
after the buyer has paid a small price for it known as Option Premium.
Options can be in Gold, Silver, Commodities, Stocks, Land and so many
other things. The person who sells
the option is called an Option Writer. Options can be of two types namely Calls
and Puts.
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