Normalized Open Interest

Normalized Open Interest (nOI) — Indicator Overview

What it does
Normalized Open Interest (nOI) transforms raw futures open-interest data into a 0-to-100 oscillator, so you can see at a glance whether participation is unusually high or low—similar in spirit to an RSI but applied to open interest. The script positions today’s OI inside a rolling high–low range and paints it with contextual colours.

Core logic
Data source – Loads the built-in “_OI” symbol that TradingView provides for the current market.

Rolling range – Looks back a user-defined number of bars (default 500) to find the highest and lowest OI in that window.

Normalization – Calculates
nOI = (OI – lowest) / (highest – lowest) × 100
so 0 equals the minimum of the window and 100 equals the maximum.

Visual cues – Plots the oscillator plus fixed horizontal levels at 70 % and 30 % (or your own numbers). The line turns teal above the upper level, red below the lower, and neutral grey in between.

User inputs
Window Length (bars) – How many candles the indicator scans for the high–low range; larger numbers smooth the curve, smaller numbers make it more reactive.

Upper Threshold (%) – Default 70. Anything above this marks potentially crowded or overheated interest.

Lower Threshold (%) – Default 30. Anything below this marks low or capitulating interest.

Practical uses
Spot extremes – Values above the upper line can warn that the long side is crowded; values below the lower line suggest disinterest or short-side crowding.

Confirm breakouts – A price breakout backed by a sharp rise in nOI signals genuine engagement.

Look for divergences – If price makes a new high but nOI does not, participation might be fading.

Combine with volume or RSI – Layer nOI with other studies to filter false signals.

Tips
On intraday charts for non-crypto symbols the script automatically fetches daily OI data to avoid gaps.

Adjust the thresholds to 80/20 or 60/40 to fit your market and risk preferences.

Alerts, shading, or additional signal logic can be added easily because the oscillator is already normalised.