📈📊 Open interest is simply the total number of unsettled futures contracts – essentially, new money entering or leaving the market. Rising OI means more participants are stepping in, adding conviction to the current price move. Falling OI, however, means contracts are closing, and market interest is waning. Now, pair it with price. Price up + OI up signals a strong, validated uptrend driven by new money. But be wary of Price up + OI down; that’s often short covering, not new buying, suggesting exhaustion. A practical signal: if price is making new highs but OI is consistently declining, the rally is built on shaky ground and a reversal could be brewing. I learned this the hard way.

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