๐๐ Hey everyone, let's talk Open Interest. This isn't just some fancy metric; itโs the total number of open contracts in a market. When OI rises, new money is flowing in, confirming genuine interest and strength in the current trend direction. When it falls, contracts are closing, meaning money's exiting, suggesting a weakening trend or exhaustion.
Now, hereโs where it gets juicy when you pair it with price. If price is going up and OI is also climbing, thatโs strong bullish conviction โ new buyers piling in, pushing prices higher. But if price is going up and OI is *falling*, thatโs a huge red flag, folks. It means the price rise is mostly from shorts covering or existing longs taking profit, not fresh buying pressure. This often signals a weakening trend or even a potential reversal....
Now, hereโs where it gets juicy when you pair it with price. If price is going up and OI is also climbing, thatโs strong bullish conviction โ new buyers piling in, pushing prices higher. But if price is going up and OI is *falling*, thatโs a huge red flag, folks. It means the price rise is mostly from shorts covering or existing longs taking profit, not fresh buying pressure. This often signals a weakening trend or even a potential reversal....