How to Use Opening OI for Day Trading
Opening session OI tells you where institutions are positioning.
Morning routine:
- 9:05 AM: Check pre-open OI at key strikes
- 9:15 AM: Identify highest OI change
- 9:30 AM: Trade the direction of max OI
- 12PM: Close all positions
Rules:
- Follow OI, not price action alone
- Highest OI change = smart money direction
- Avoid counter-trend trades against OI
- Size: 1% risk per trade
Example:
22500 CE OI +2M, PE OI +0.5M → Bullish
Trade: Buy 22500 CE, target 22600, SL 22450
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