HomePremium scanner guidesIndia F&O — OI-Price Divergence Trap

India F&O — OI-Price Divergence Trap

India F&O SELL signal India F&O — Flow & Volume SWING

Price surging 2.5%+ but OI declining > 2% — weak breakout with no new conviction. Classic short-covering rally: old shorts exiting, not fresh longs entering. RSI > 60 (extended) = smart money distributing into retail FOMO. Analog of crypto OI-Price Divergence Trap. Fade the extension, target base retest. Entry: intraday rejection candle. Stop: above day high. Target: -3% to -5%.

The edge — what this scanner is hunting

Price up sharply + OI down = distribution. Same logic as crypto OI divergence — rally is being sold into. RSI > 60 confirms exhaustion.

How it fires

change_pct > 2.5 + oi_change_pct < -2 + RSI > 60.

When to take this trade

HorizonSwing
Scanner timeframe1d
Confirm entry on4h / 1d
Typical hold2–5 days
Max hold / time-stopUntil divergence resolves
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Historical edge

55–60% with distribution candles. Full breakdown in the premium app.

This screener surfaces a quantitative setup based on derivatives data. Past patterns do not guarantee future moves. Indian F&O instruments are leveraged and time-decayed — manage position size and stop discipline. This is information, not investment advice. Verify the setup on your own charts before trading. Consult a SEBI-registered advisor for tailored guidance.

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