Increased trading volume, decreased open interest, rising prices
This combination of 'price, volume, and open interest' indicates that the bears are actively closing positions, leading to an increase in trading volume. This situation generally occurs in the middle of a market trend and is accompanied by phenomena where bulls kill bulls and bears kill bears. Since the market favors one side, the opposite side rushes to exit, resulting in a gradual decrease in open interest. The rapid price fluctuations provide good opportunities for short-term speculation, so short-term capital actively intervenes, and trading volume does not decrease. Sometimes, the increase in short-term trading volume can mask the exit of long-term capital, making the trend of decreasing open interest not obvious. In this case, there may be a mid-term rebound, and the market rebound can be intense, giving a feeling of a trend reversal; however, if the larger trend is still bearish, then the price increase at this time may only be fleeting.
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When this combination appears at the bottom of the price, the market often experiences a slight increase because prices have fallen to the bottom, the bears have a better mindset, and will not aggressively push prices down, leading to a slight increase. However, the bulls' sentiment is relatively low, and prices will not be pushed too high. If this combination appears at the top, it indicates that bearish stop-loss behavior is evident, chasing prices to close positions, while the bulls are only passively closing positions at high levels, with relatively little force from the bulls to push prices down, resulting in a higher probability of a price drop in the future.