Open Interest Anomaly Detector

Open Interest Anomaly Indicator

This indicator is designed to detect anomalies in Open Interest (OI) and highlight moments when capital is aggressively entering or exiting the market.

The indicator plots raw Open Interest values as a column histogram. A moving average is applied to establish the baseline behavior of OI, while standard deviation bands define thresholds for abnormal deviations. These deviation levels can be customized in the settings.

When Open Interest rises above the upper deviation band, the indicator marks these events in green, signaling positive anomalies, often associated with sudden inflows of capital.
When Open Interest falls below the lower deviation band, it highlights these points in red, indicating negative anomalies, which may reflect capital leaving the market due to stop-loss triggers, take-profit executions, or liquidations.

It is important to note that Open Interest alone does not generate entry signals. Instead, it serves as a contextual layer, helping traders understand market dynamics and confirm other tools. For cleaner signals with reduced noise, we recommend using the indicator on the 15-minute timeframe.

Using Open Interest Together With Delta

The indicator becomes even more powerful when combined with Delta, providing clear insight into who is entering or exiting the market:

Delta > 0 and Open Interest rising → Long positions are entering the market.

Delta < 0 and Open Interest rising → Short positions are entering the market.

Open Interest falling (regardless of Delta) → Money is leaving the market; long or short positions are being closed, either by profit-taking or by forced exits.

This synergy between Open Interest and Delta offers a deeper understanding of market flow and can produce highly informative signals when used together.