Key Observation from the Total Open Interest (TOI) Framework

[nishshkumarjaani@gmail.com]

Key Observation from the Total Open Interest (TOI) Framework

One recurring pattern we have observed using the Total Open Interest (TOI) indicator — developed at Definedge with AP Sir — is related to data sufficiency for EMA calculations.

Observation:

Whenever TOI does not have sufficient data from the last 5 trading sessions, the system is unable to plot the 10-day & 30-day EMA and their respective spread.

️ What happens next?
Historically, such situations often occur near market exhaustion points, where the ongoing trend struggles to sustain momentum.

In several instances, this has been followed by:

• Market halting the current move
• Loss of directional strength
• Potential reversal or sharp mean reversion

Current Context

In yesterday’s data:
• TOI → Unable to plot its EMA
• CE Spread → Also unable to plot its EMA
This rare data condition is worth monitoring closely as it may signal a possible turning point in market direction.

Keeping fingers crossed for a reversal setup.

Nishesh Jani,CFTe

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