Understanding Unusual Activity Alerts
RxFlow monitors thousands of option strikes in real-time, detecting patterns and anomalies that would be impossible to track manually. Our detection system identifies four types of unusual activity: volume spikes, open interest changes, aggressive buying, and aggressive selling. This guide explains what each alert type reveals about market activity and how to interpret the data.
What RxFlow Detects
🚀Volume Spike
What it reveals:
Trading volume for a specific strike has surged well beyond its typical levels, indicating heightened market interest.
Why it matters for analysis:
Volume is a key indicator of market participation. Unusual volume reveals where traders are actively positioning, helping you identify strikes worth deeper analysis.
Data provided:
- Volume multiplier (how much above normal)
- Premium value traded (scale of activity)
- Unusuality score (0-100)
- Timestamp and market context
What you can analyze:
- Is this strike seeing unusual participation?
- What's the scale of money flowing into this position?
- Is volume spike accompanied by price or OI changes?
📊Open Interest Change
What it reveals:
Open Interest (OI) represents total outstanding contracts. Changes show whether positions are being opened (OI increasing) or closed (OI decreasing).
Why it matters for analysis:
OI changes reveal market positioning and conviction. Unlike volume (which shows trades), OI shows net position building or unwinding - crucial for understanding market sentiment.
Directional Context Provided:
RxFlow automatically interprets the direction:
Historical Pattern Analysis:
OI alerts include confidence grades (EXCELLENT, VERY_GOOD, GOOD, FAIR, POOR, AVOID) based on how similar patterns have historically played out.
What you can analyze:
- Are new positions being built or existing ones closed?
- What does the directional context suggest about market sentiment?
- How have similar patterns performed historically?
- Is this supported by volume data?
🟢Aggressive Buy
What it reveals:
Sharp price increase with elevated volume - indicating urgent buying activity in the market.
Why it matters for analysis:
Aggressive price movements with volume suggest conviction or urgency. This data helps you identify strikes experiencing rapid demand shifts.
Data provided:
- Price change percentage
- Volume elevation
- Premium value traded
- Severity level
- Unusuality score
What you can analyze:
- How rapid is the price movement?
- Is volume supporting this move?
- What's the scale of buying (premium value)?
- Is this part of a broader market pattern?
🔴Aggressive Sell
What it reveals:
Sharp price decline with high volume - indicating urgent selling activity or position unwinding.
Why it matters for analysis:
Aggressive selling patterns help you identify rapid sentiment shifts, hedge buying, or position exits that may be relevant to your analysis.
What you can analyze:
- Is this panic selling or controlled unwinding?
- What's the volume pattern?
- Are other strikes in the chain showing similar patterns?
- Is this isolated or part of broader market movement?
Understanding the Data Points
Unusuality Score (0-100)
Every alert includes a composite score indicating how unusual the detected activity is:
| Score Range | Interpretation |
|---|---|
| 90-100 | Extremely rare activity |
| 75-89 | Very unusual patterns |
| 60-74 | Notable deviation from normal |
| 40-59 | Moderately unusual |
| Below 40 | Mildly unusual |
This score helps you quickly assess which alerts represent the most significant deviations from normal market behavior.
Confidence Grades (OI Alerts Only)
For Open Interest alerts, RxFlow provides confidence grades based on historical pattern analysis:
Patterns that have historically shown strong directional follow-through
Patterns with positive historical performance
Neutral historical patterns
Patterns with weak historical performance
How to use confidence grades
This historical context helps you understand which OI patterns have been most reliable indicators in the past. Combined with other market data, this gives you deeper analytical insight.
Alert Severity Levels
RxFlow categorizes all detected activity into four severity levels to help you prioritize your analysis:
💡LOW - Entry-Level Signals
- • Notable deviation from normal
- • Useful for: Broad market scanning, early pattern detection
⚡MEDIUM - Clear Anomalies
- • Clear deviation from typical activity
- • Useful for: Active market monitoring, pattern confirmation
🔥HIGH - Significant Activity
- • Substantial deviation from normal
- • Useful for: Priority analysis, significant market events
🚨EXTREME - Rare Events
- • Exceptional, rare activity
- • Useful for: Highest priority analysis, major market movements
Filtering tip
You can adjust which severity levels you want to monitor based on how actively you analyze the market. More severe alerts = fewer but stronger signals.
Reading Alert Data
Data Elements Explained:
1. Symbol Header
- Strike details: Symbol, strike price, option type
- Current price with change percentage
- 🟢 = Call (CE) | 🔴 = Put (PE)
2. Activity Type
- What pattern was detected
- Directional context (for OI alerts)
- Confidence grade based on historical patterns
3. Premium Traded
- Total value of contracts traded
- Indicates scale: ₹1Cr+ = substantial activity
4. Analytical Metrics
- Unusuality score (how rare is this)
- Volume status
- OI changes
- Expiry date
- Detection time
Using Alerts for Analysis
What the Platform Enables
Real-Time Market Intelligence
- • Monitor thousands of strikes simultaneously (impossible manually)
- • Instant detection of unusual patterns across entire option chains
- • Historical context for every pattern detected
- • Filter and focus on what's relevant to your analysis
Pattern Recognition
- • Identify strikes with unusual activity before they're widely noticed
- • Track multiple pattern types simultaneously
- • See correlated movements across strikes
- • Understand market positioning through OI analysis
Data Aggregation
- • Premium value tracking (follow the money)
- • Volume analysis (identify participation)
- • OI tracking (understand positioning)
- • Historical performance data for pattern context
Analysis Approaches
Broad Market Scanning
- • Monitor: All activity types, MEDIUM severity and above
- • Coverage: Major indices (NIFTY, BANKNIFTY)
- • Use case: Stay informed of major market movements
Focused Monitoring
- • Monitor: Specific strikes via Custom Watchlist
- • Coverage: Your positions or strikes of interest
- • Use case: Deep analysis of specific opportunities
Pattern-Specific Analysis
- • Monitor: Single activity type (e.g., OI_CHANGE only)
- • Coverage: Based on your analytical focus
- • Use case: Specialized analysis strategies
High-Priority Only
- • Monitor: HIGH and EXTREME severity only
- • Coverage: Any indices/stocks
- • Use case: Focus on only the strongest signals
❓ Frequently Asked Questions
Q: How many alerts will the platform generate per day?
A: Depends on market volatility and your filter settings:
- HIGH/EXTREME only: Typically 5-15 alerts/day
- MEDIUM and above: 15-30 alerts/day
- All severities: 30-50+ alerts/day
- Highly volatile days: Can exceed 100 alerts
Q: What makes activity "unusual"?
A: RxFlow compares real-time activity against historical baselines for each specific strike. The system accounts for time-of-day patterns, strike characteristics, and market conditions to identify statistically significant deviations.
Q: What's the difference between score and confidence grade?
A: Score (0-100): Measures how unusual the current activity is (magnitude of deviation). Confidence Grade: (OI only) Historical reliability indicator - how similar patterns have performed. Both metrics provide different analytical perspectives.
Q: Why do only OI alerts have confidence grades?
A: We have extensive historical outcome data for OI patterns, allowing meaningful confidence scoring. We're continuously expanding this to other alert types.
Q: What does "Long build-up" mean for a PUT option?
A: It means OI is increasing while the PUT price is rising - indicating bears are adding positions (expecting the underlying to fall). The platform identifies the directional context automatically.
Q: Can I monitor specific strikes I'm interested in?
A: Yes! Custom Watchlist (Premium) lets you add up to 50 specific strikes. You'll receive alerts only for those strikes, perfect for focused analysis.
Q: What premium value is considered significant?
A: Premium value indicates the scale of capital flowing into positions:
- ₹10-50L: Notable activity
- ₹50L-1Cr: Significant activity
- ₹1Cr+: Very substantial activity
- ₹5Cr+: Major market activity
Q: How often is the market scanned?
A: Real-time during market hours (9:15 AM - 3:30 PM IST). Volume and price patterns are detected continuously, while OI changes are checked at optimized intervals for maximum signal quality.
Q: What strikes are monitored?
A: Thousands of strikes monitored simultaneously:
- 4 Indices: NIFTY, BANKNIFTY, FINNIFTY, MIDCPNIFTY (all active strikes)
- 15 Stocks: RELIANCE, SBIN, HDFCBANK, INFY, TCS, ICICIBANK, KOTAKBANK, ITC, HINDUNILVR, BHARTIARTL, BAJFINANCE, LT, ASIANPAINT, AXISBANK, TITAN
Q: Can I see historical alerts?
A: Yes, the platform maintains a complete history of all detected unusual activities with their outcomes, allowing you to research past patterns and market behavior.
Q: How do I avoid alert fatigue?
A: Several strategies:
- Increase minimum severity (focus on HIGH/EXTREME)
- Use Custom Watchlist for specific strikes
- Filter by activity type (e.g., OI_CHANGE only)
- Enable trading hours filter
- Focus on higher confidence grades for OI alerts
Q: What if I miss an alert?
A: All alerts are logged in your activity feed. You can review missed alerts, see their outcomes, and analyze patterns even after market hours.
Q: How is this different from screeners?
A: Traditional screeners show current snapshots based on your criteria. RxFlow actively monitors and detects changes - alerting you when unusual patterns emerge in real-time, even on strikes you weren't specifically watching.
Related Documentation
Configure broad market monitoring
Set up precision strike monitoring
Coming Soon:
- • Telegram Bot Setup - Receive real-time alerts on Telegram
- • Alert Configuration - Customize filters and delivery preferences
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Questions?
- 📧 Email: contact@rxsynapse.com
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