📊 How to Find Support & Resistance in AOC?

Understanding Support & Resistance in Options Trading

Support and resistance levels play a crucial role in options trading, helping traders determine where the market is likely to reverse, consolidate, or break out. These levels are created by Call and Put Writers—institutional players and smart money—who build strong zones based on Open Interest (OI), OI Change, and Volume.

Unlike traditional methods, AOC (Advanced Option Chain) simplifies the identification of support and resistance by using color-coded indicators and percentage-based analysis. This makes it easier to recognize key market levels without manually analyzing complex data.

📌 How Support & Resistance Are Formed in AOC?

1️⃣ Put Writers Create Support

Put Writers (Sellers) sell Put Options (PE) at a strike price because they expect the market to stay above that level. Since selling an option requires huge capital, they defend this level aggressively.

• If a strike price has highest OI, OI Change, or Volume in Puts, it becomes a strong support zone.
• Traders prevent the price from falling below this level, as it would cause losses.

✅ Example: If 18,000 PE has the highest OI Change and OI, then 18,000 is a strong support level.

2️⃣ Call Writers Create Resistance

Call Writers (Sellers) sell Call Options (CE) at a strike price because they expect the market to stay below that level. Just like Put Writers, they have significant capital and influence on the market.

• If a strike price has highest OI, OI Change, or Volume in Calls, it acts as a strong resistance zone.
• Traders prevent the market from crossing this level to protect their positions from losses.

✅ Example: If 18,500 CE has the highest OI Change and OI, then 18,500 is a strong resistance level.

📌 How to Find Support & Resistance in AOC?

Step 1️⃣: Open the AOC Option Chain

• Visit AOC Calculator and select the desired index or stock.
• Focus on the Open Interest (OI), OI Change, and Volume columns.

Step 2️⃣: Identify the Highest OI, OI Change, and Volume

• *****The strike price with the highest values in Puts (Support) or Calls (Resistance) is your key level.*****
• Support & Resistance can be formed using:
  
  • A single factor (OI/ OI Change or Volume alone)
  • Any two of them together
  • All three factors combined (Strongest Support/Resistance)

✅ Example:

• If 18,000 PE has the highest OI and OI Change, it’s strong support.
• If 18,500 CE has the highest OI and OI Change, it’s strong resistance.

Step 3️⃣: Use the Percentage Graph for Confirmation

AOC provides a Percentage Graph to visualize the strength of support and resistance levels.

• Click on the OI tab of any strike price to open the Percentage Graph.
• The graph compares Volume, OI, and OI Change across all strike prices and marks the strongest support and resistance levels.

Color Codes in AOC:
🟢 Green Box = Strong Support
🔴 Red Box = Strong Resistance
🟡 Yellow Box = 2nd/3rd strongest level

🚀 Why Use AOC for Support & Resistance Analysis?

✅ Real-Time Market Data – AOC provides live updates on OI, OI Change, and Volume to track the market accurately.
✅ Percentage-Based Analysis – Instead of using raw numbers, AOC converts data into percentages for easy comparison.
✅ Color-Coded Support & Resistance – No need for manual calculations! AOC highlights strong support in Green and strong resistance in Red for quick identification.

📌 Final Thoughts

AOC’s advanced Option Chain Analysis helps traders identify high-probability support and resistance levels with accuracy. Whether you’re a beginner or an expert, AOC provides the right tools to analyze market sentiment, predict shifts, and make better trading decisions.