[Nitin Bhatia]

I have gone through the stock futures video, which talks about the top-down approach for the analysis. I need some feedback (by anyone) on the logic that I am currently using to understand stock futures data:
1. using 3,5,8 rules:
a. Compute 3,5,8 day average of change in OI (CHG_OI) and close price
b. Look for trend in averages: both increasing long, CHG_OI is up and but price in down short, CHG_OI is down but price is moving up or down then reversal, if change is OI is high but no change in price big move is about to come
2. Similarly I have rules for 5,8,13 and 10,20 day
I was back testing this logic (last 90 days), it was not giving very clear signals.
I understand we cannot solely trade based on just this data point. Please if there is something fundamentally wrong with the logic do let me know. P.S I also check for roll_over
Thank you in advance

[Nitin Bhatia]

It is not possible to comment just based on single data point but it seems, the stock is either in a accumulation or distribution phase.

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