Simulated OI Proxy with Moving Average

🧠 Simulated Open Interest (OI) Proxy with Moving Average
This custom TradingView indicator estimates market participation and positioning by simulating Open Interest (OI) using a proxy derived from price change and volume movement — useful especially when OI data is unavailable (e.g., NSE stocks or options).

📊 Concept & Logic:
Since TradingView doesn’t provide real OI data for many symbols (like Indian equities), this script uses a smart proxy:

✅ Simulated OI Conditions:
Long Buildup (Green bar):
Price is rising and volume is increasing → suggests fresh buying.

Short Buildup (Red bar):
Price is falling and volume is increasing → suggests new shorts are entering.

Short Covering (Blue bar):
Price is rising but volume is falling → suggests shorts are exiting positions.

Long Unwinding (Orange bar):
Price is falling and volume is dropping → suggests long positions are closing.

Neutral (Gray):
No strong directional signal.

Each condition is assigned a numeric value for analysis:

Long Buildup = +1

Short Buildup = -1

Short Covering = +0.5

Long Unwinding = -0.5

Neutral = 0

📈 Simulated OI Moving Average (Yellow Line):
To remove short-term noise, we apply a Simple Moving Average (SMA) over the simulated OI values (default: 21 periods). This line helps you:

Identify dominant positioning trends (bullish or bearish).

Use it as a signal filter in your trading strategies.

🔧 Customization:
OI MA Period: Adjust how smooth or reactive the moving average should be.

You can change the logic or combine this with EMA, RSI, or price action tools for a complete trading system.

🔍 Use Cases:
Traders in markets where real OI data is not available (like Indian stocks/options).

To analyze buildup and unwinding behavior without relying on exchange-fed OI.

As a momentum filter or signal enhancer in broader strategies.

📌 Note:
This is a proxy indicator, not a substitute for actual Open Interest. But it’s highly effective when used alongside price action and trend filters.