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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