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How to Use the BullBull Stock Market Trend Predictor

how to predict stock market trends
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Before anything, please follow this advice:

Please use the tool after 3.30 PM on any market day for predicting trends. Day traders can use it after 2 PM after meaningful volumes have built up.

Technical analysts say that volume always precedes price action and that is why technicals are more important than fundamentals (which represent figures of the past).

They are right, Technicals are actually more important when it comes to predicting trends.

BUT…

There is one factor that is more important than technicals. In fact, this factor is akin to a leading indicator of forthcoming technical action.

This factor is open interest.

In the NSE Futures and Options segment, investors can pick up shares in bulk by paying a small margin.

For example, if you figure BHEL will trend up, you can buy the 31 Aug CE of 150 at a mere 5 bucks (5,000 shares make 1 lot). So, by investing Rs 25,000, you are effectively creating a buy position of Rs 7.5 lakhs! Then, you can keep rolling over the position (squaring by expiry and then buying afresh).

So, an institution that wants to buy or sell a huge quantity of stocks will typically operate both in the F&O and the cash markets. They may also use options as a hedging strategy (buy in cash market and sell in options market (by buying put options) to hedge against a fall).

I have created a tool, a TREND PREDICTOR, that calculates open interest trades to predict which way stocks and indices will move. It shows you where smart money is headed to. I have tried it by taking positions and my trades were profitable (Britannia, Manappuram) but KNOW THAT you are responsible for your decisions and so do not take the results thrown up by this tool as a recommendation.

Here is a tutorial on how to use it (please follow the captions):

Before the tutorial, know that THIS TOOL MUST BE USED ONLY AFTER MARKET CLOSES AND DATA IS UPLOADED BECAUSE IF INCOMPLETE DATA IS FED INTO THE TOOL,  IT WILL GIVE A FALSE SIGNAL.

STEP ONE

how to predict which way the stock market will move

STEP 1: Open up: https://bullbull.in/trend-predictor/ Keep it open and open another tab on your browser.

STEP TWO

predict stock market trends with this tool

Now open: https://goo.gl/SrYL3F Refresh the page to ensure the data is latest. Remember, you must do this only after market hours (as I have mentioned earlier). You can choose any sector you like. For this example, I have chosen Cement & Construction.

STEP THREE

learn how to tell stock market trends

Select the data in the table and copy it (Ctrl + C).

STEP FOUR

Predict NSE and BSE movements to spot multibaggers

Paste the data in the hollow box provided in BullBull’s Trend Predictor. Though the box is hollow, it has been programmed to accommodate the table. Hit CALCULATE button after pasting the data.

STEP FIVE

learn how to measure market momentum

Now scroll down to view the results. Do not forget to interpret the Neutral data, which is explained at the bottom in every result.

Finally, remember that these predictions can swing either way depending on news, economic factors, black swan events, etc. Though I have followed best forecasting practices while creating this tool, I suggest you must do your own research and consult your broker before taking positions. I also suggest you to mock trade for a few days to judge whether this tool works and then make your own decision.

ALL PREDICTIONS OF THIS TOOL ARE LARGELY SHORT TERM.

Image taken from CNBC.

19 Comments on "How to Use the BullBull Stock Market Trend Predictor"

  1. Raghavendra Rao | August 1, 2017 at 10:44 am | Reply

    Dear Sunil Sir,
    You said that if market is rising and open interest is rising the sign is BULLISH

    My question is

    Market rising means should we consider at the market hours ie 9 am to 3.30 pm or the figures given in red (Bear) or green(Bull) in the above example.

    Secondly can we trade in all ie equities,F&O,Options or only equities.
    and do we need to trade only if the result is Neutral or else we can trade if it is Up or Down also.

    • sunil.tinani | August 1, 2017 at 3:55 pm | Reply

      Hi Raghvendra, Thanks for the interaction:

      Please use my tool after 3.30 on any market day for predicting trends. Day traders can use it after 2 PM after meaningful volumes have built up.

      I’ll give you an example. We saw Exide in an uptrend by 11 AM today when it was at 220. We checked the open interest data and all 3 parameters (OI, volume and price) were up. It closed at 224.

      And, yes, you can trade in cash market as well based on the trend. Please apply you own judgment while trading, we are mere facilitators.

  2. Dear Sunil sir

    Appreciate your efforts for the wonderful scanner.

  3. Dear sir,

    Please help … did not find intrinsic value calculator and also request you to please help as to how to use the same.
    thanks and regards
    Ameet Pandit

  4. Dear Sir,

    Could you please share the formula to calculate this trend? I would like to understand the thinking behind this calculation.

    Thanks.
    Amit

  5. Good evening sir,
    1. Sir I m capt kashideep (indian army) a avid reader of world activity, and today after going through your entire site I m writing to pay heartiest thanks to you. Sir wish to learn this art of reading market and stocks picking .
    .
    2. Sir i find this field interesting not with motto of earning .My target is to learn and pass on this knowledge to those who are unaware and had burnt of market flames ,i m one of those and that motivated to start getting into this.

    3. Sir I appreciate your work and dedication for beginners that inspired me to go through your site BULLBULL entire day.I tried to gain as mush as possible ,but its well said “bina guru k gyan kaha” . Gone through articles found highest of depth and insight.

    4. sir going through site not able to understand many topics and usage of your screener. Its my humble request if can you spare some of valuable time to guide this novice, sir presently i m posted at pune. Sir pl don’t get me wrong if I have gone wrong somewhere. Sir seek your guidance .

    with warm regards kashi

    • Good eve sir ,
      1. Great efforts and dedicated work that led to such precise tool.
      2. from yesterday till today i ve gone through your all articles . Amazed and eye openers in this field of stock market and ll be seeking guidance from you sir.
      3. Thanks a ton sir and looking forward to read your upcoming articles.
      with warm regards kashi

  6. Mayank Upadhayay | April 19, 2018 at 3:43 pm | Reply

    Sir,
    UP means BUY
    Down means SELL
    Neutral- We have to check whether Sensex or that Index was up or down after the market hours for that day. And Sir If market is falling, and open interest is falling, the sign is BULLISH then we should wait for the stock end up or it will take some time to close up.
    Finally what does watch and buy means, meaning time period to watch…
    Sir new to your website and investing, forgive if question seems silly…
    Sincerely

  7. Sunil Sir, If we use the Trend Predictor after market hours can we get a list of stocks for Intra day trading for the following day?
    Trend Predictor is doing what is written in the article
    how-to-analyze-open-interest-data-and-generate-profitable-swing-trades with an exception of Chart analysis.
    Please correct me if I am wrong.

    • Play only with stocks in whch

      OI increase is greater than 6%
      Volume increase is at least by 30%
      Price increase is limited to 1% to 2%

  8. This is very good site
    From Kolkata ,I am Pulakesh Das

  9. From Kolkata ,I am Pulakesh Das

  10. Sir,
    I could not find the box in Trend Predictor in which to paste the data.Again you have not mentioned from where to get the sectorwise data of OI.Can you elaborate?

  11. Want to know more about your trend predictor. How much it costs ? Can l speak to you directly to know about the details ?

    • sunil.tinani | March 10, 2019 at 3:46 am | Reply

      The Trend Predictor is on the site. It is based on OI. However, OI should be monitored live and I am considering removing it from the website

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