Speaker A
Hello everyone, this is Shiva here. Welcome back to the live learning with OI Pulse and One Click. Nifty opens with a huge gap up of over 200 points and soon moves another 50 points higher.
Learn the trending OI option buying strategy with entry, exit, averaging, and stop-loss rules for Nifty trading on 26 Aug 2026.
Key Takeaways
- Trade only when trending OI difference is at least 40% with two or more strength dots.
- Avoid trading in indecisive or overextended markets and wait for pullbacks to key indicators.
- Use disciplined averaging and planned stop-losses based on chart levels, not option premiums.
- Exit positions gradually near significant price levels to capture potential bounces.
- Patience and waiting for clear OI confirmation can prevent losses from premature entries.
What the video covers
- The video explains a trending Open Interest (OI) strategy for option trading on Nifty with real trade examples.
- It emphasizes waiting for strong OI signals before entering trades, avoiding chasing weak moves or overextended markets.
- Trending OI tracks open interest across 15 active strikes to identify whether call or put sellers dominate, indicating bullish or bearish sentiment.
- The strategy requires a minimum 40% OI difference and at least two strength dots to confirm trade direction.
- Entry is made on the first pullback to the super trend and VWAP zone, with stop-loss placed above/below recent swing highs/lows.
- Averaging is done within a planned price range to improve breakeven and maximize gains, adding lots as the market moves.
- Exits are staggered lot by lot near key support/resistance levels, with stop-losses trailed to protect profits.
- The video highlights the importance of not trading when signals are weak or indecisive, and patience is key.
- A live trade walkthrough on a gap-up day shows how the strategy was applied to enter a put trade profitably.
- The creator encourages viewers to like, comment, and support for more educational content.
Chapters
- 00:00Introduction and Market Context
- 00:27Overview of Trending OI Strategy
- 00:47Importance of OI Confirmation and Common Trading Mistakes
- 01:17Understanding Trending OI and Strength Dots
- 02:10When to Avoid Trading
- 02:38Trade Planning: Entry, Stop Loss, and Averaging
- 03:33Trade Management and Exit Strategy
- 04:49Live Trade Walkthrough and Application
- 06:58Summary and Final Tips
Full Transcript — Download SRT & Markdown
Speaker A
Your screen is all green and it feels like you're missing the move. On the day, I didn't buy a single call. I waited and a little later I took a put trade instead and ended my day in green. You
Speaker A
can watch the full live trading video of this day using the link in the description. Today we will learn the trending OI strategy. You'll understand the entry, the exit, averaging, and the stop-loss for the trending OI strategy.
Speaker A
A small note before we continue, my team and I are putting a lot of effort into making these educational videos for you.
Speaker A
So, if you find this video useful, please give it a like and share your feedback in the comment section. Your support motivates us to bring more strategy tutorials along with real-life trade examples like this. Now, let's continue with the video. Here's what
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usually happens on a day like this. A trader sees the gap up, buys a call option near the top, and then watches the market slowly falling down. The premium melts, the stop-loss gets hit, and the day starts with a loss. The
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problem wasn't the chart. The problem was entering without asking one question. Are the big sellers actually behind this move? That's exactly what trending OI answers. Trending OI tracks the open interest across 15 active strikes. So you can see where the
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sellers are really building positions, not just at one strike. When call sellers are adding more positions than the put sellers, the buyers are bearish.
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When put sellers are adding more positions than the call sellers, the buyers are bullish. The difference percentage tells you how one-sided it is and the strength dots show how strong that buildup is. My rule is simple. I only trade when the difference is at
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least 40% with at least two strength dots. Three dots is even stronger. Similarly, it is important to know when to stay out. First, if the direction of change flips two or three times within 10 minutes, the market is undecided. So,
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I don't trade that direction. Second, I don't chase a move which is made of weak and small candles unless the trending OI confirms it. Third, if the market has already moved more than Nifty's daily average range around 250 points,
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including the gap, the market may rest or reverse from there. And I never enter at the day's high or low. Instead, I will wait for the pullback. On this gap up day, three warning signs were already on the screen. The move came without
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strong candles. The market had already run more than 250 points including the gap and the trending OI could not hold above 40% and has just one strength dot.
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So the right trade at that moment was no trade. Once the trending OI gives a clear signal, I wait for the first pullback to the super trend and VWAP zone and I look for the price to reject from there.
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Before entering, I plan two things. The range I am going to average in this trade is around 50 points and my stop loss will be above the swing high. For the strike, I choose one strike in the money option from the current spot
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price. And I don't always take the full quantity at once. If the price turns before fully reaching the indicators or the range to my stop loss is wide, I start with just one lot so I have room to add later. Most of the time I will
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place my stop loss a few points above the previous swing high or the day's high for a put trade or I will place the stop loss a few points below the previous swing low or the day's low for a call trade.
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The stop-loss levels are always judged on the chart, not on the option premium. If the price comes near the super trend and VWAP zone, I will add some quantity where the market will reject most of the time or I will add one lot for every 10
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points fall in the option premium. Remember averaging works both ways. If the market moves against me, I will add more quantity and bring my breakeven price closer. Also, if the market moves in my favor, I will add more quantity
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and increase the position size for higher gains. Once I'm done averaging and holding more quantity and the market hasn't moved any side for about 30 minutes, I tighten my stop-loss to just above the super trend and VWAP. For
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exits, I don't close everything in one click. As the price reaches the previous swing low or nears the day low, I start exiting lot by lot because the market often bounces from these levels. For the last lot, I move the stop-loss to breakeven,
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then I will trail it or let the market hit my target. One thing many traders get wrong, a move against you is not a reason to exit, especially when the trending OI data is still strong. I
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exit early only if the opposite candle is strong and violent. And on expiry day, the premium decay is fast. So I may exit sooner if the market didn't move in favor. Now let's walk through that day from start to finish. After the gap up,
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the market pulled back to the super trend and VWAP. That's where I'd normally look to enter a call long trade. But the trending OI has just 33% difference and has only one strength dot. So I skipped the call trade because
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trending OI shows weak bullish sentiment in Nifty. Then the picture changed. The price failed to bounce from the super trend and VWAP and strongly fell below the indicators and made a new day low. At the same time, the
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difference went to negative 44% with two strength dots, which indicates the trend has changed to bearish. So, I entered a put long trade during this pullback with my stop loss placed a few points above the day high. Since the range is too
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wide from here, I entered the trade with just one lot and waited to average more if the market moves inside the 80 points range. But the market moves slightly higher and rejected without even touching the indicators. So I added
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another one lot here itself. Also, the trending OI had a bearish crossover. You can see that the call OI was increasing and put OI was reducing [music]. And when the market started moving in my favor, I added two more lots as my final
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averaging quantity. Since the market didn't move and I already averaged the position in the lower levels itself, I moved my stop loss just above the super trend and VWAP to protect this position.
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As the market came near to the previous swing low, I started exiting my positions one by one while the market was making a new low because most of the time the market will bounce after making a new low. As I told, the market bounced
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and the remaining lot closed at its breakeven stop-loss. You can watch the full live trade video on our channel link given in the description below. So here's the whole strategy in one screen.
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Trade only with at least 40% OI difference and two strength dots. Avoid indecisive, weak, or overextended markets. Enter on the first pullback to super trend and VWAP. Plan your stop.
Speaker A
Add with discipline and exit lot by lot. Remember, the best trade on the day is started with not trading. I hope you enjoyed this video and I'll see you in another interesting video. Thank you.
Speaker A
Hey. Hey. Hey.
Topics:trending OI strategyoption buyingNifty tradingopen interestsuper trendVWAPoption stop lossoption averagingput option tradecall option trade
