đđ Open Interest (OI) reveals market commitment. Itâs the total unsettled futures contracts. Rising OI means new money, fresh positions. Falling OI signals positions closing.
Here's the powerful part: If price and OI both climb, that's strong bullish conviction. But if price rises while OI falls, it's a huge red flag â often just short covering, lacking true demand, signaling weakness. Conversely, price down with OI up confirms strong bearish pressure. Price down with OI also falling often means long liquidation, hinting at exhausted selling.
After my $5,400 losses, I learned this: If price hits new highs but OI is flat or falling, that's a critical divergence. The rally's fuel is running out. Use this to anticipate reversals and protect your capital.
#OpenInterest #FuturesTrading #MarketAnalysis #TradingSignals #TradeSmart
Here's the powerful part: If price and OI both climb, that's strong bullish conviction. But if price rises while OI falls, it's a huge red flag â often just short covering, lacking true demand, signaling weakness. Conversely, price down with OI up confirms strong bearish pressure. Price down with OI also falling often means long liquidation, hinting at exhausted selling.
After my $5,400 losses, I learned this: If price hits new highs but OI is flat or falling, that's a critical divergence. The rally's fuel is running out. Use this to anticipate reversals and protect your capital.
#OpenInterest #FuturesTrading #MarketAnalysis #TradingSignals #TradeSmart