When it comes to intraday trading, selecting the right stocks is crucial for success. One popular approach is to analyze open interest and identify support and resistance levels. In this article, we will explore how open interest can be used to make informed stock selection decisions.
Understanding Open Interest
Open interest refers to the total number of outstanding contracts in a particular stock or option. It represents the number of contracts that have been bought or sold but have not yet been closed out. High open interest suggests strong market participation and indicates that a stock is actively traded.
Using Open Interest for Stock Selection
Here are the steps to select stocks for intraday trading based on open … Read the rest